India’s richest person, Mukesh Ambani, who manages the country’s largest corporate entity, Reliance Industries, is reported to be eyeing Gokaldas Exports, a well-known Bengaluru-based manufacturer and exporter of readymade garments. The company operates through 46 factories predominantly in Karnataka and supplies apparel to global readymade garment companies like Nike, Adidas, GAP, Tommy Hilfiger, and Abercrombie and Fitch. The company was set up by the Hinduja family (not the famous UKbased Hindujas) in 1929. It was doing very well in the initial decades but subsequently suffered a setback. In 2007, the global private equity giant, the Blackstone group, acquired almost 70 per cent stake in Gokaldas through a two-step deal – 50 per cent from the promoter Hinduja family and 20 per cent through an open offer to other shareholders. With Kotak Investment Bank acting as an advisor to the transaction, shares were purchased at a price of Rs 275 per share, involving a total amount of Rs 660 crore. Blackstone preferred to remain the main investor and the company continued to be managed by the Hindujas, with Rajendra Hinduja as Managing Director and Dinesh Hinduja as Executive Director.

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However, the company failed to make any progress and plunged into the red. In 2017, it incurred a net loss of Rs 50 crore on sales of Rs 915 crore. A bruised Blackstone group decided to exit Gokaldas, taking a haircut of a huge 79 per cent, after which Matthew Cynac, a former chief of Blackstone’s private equity business in India, bought a 40 per cent stake for Rs 66.61 crore. Mr Cynac acquired another 26 per cent from other investors at a price of Rs 63.25. Sivaramakrishnan Ganpati was appointed Managing Director in 2017, and the company started turning the corner. During the last five years, the sales turnover has advanced from Rs 915 crore in fiscal 2017 to Rs 1,209 crore in fiscal 2021. The company earned a net profit of Rs 228.24 crore in 2021, a striking contrast to its net loss of Rs 50 crore in 2017.

Now, Mr Ambani is said to be eyeing the company after his successful acquisition of Alok Industries. If the acquisition of Gokaldas takes place, it is said that it may be under the aegis of Alok Industries.