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The apparel industry is surely one of the most dynamic sectors in the recent times. While on one hand India’s huge population is supporting its domestic market to grow by leaps and bounds on the other the exports sector is also experiencing good growth.

Gokaldas Exports Ltd. One of the major apparel manufacturers in the country has signed a definitive agreement to acquire 100% equity in Matrix Design & Industries Pvt. Ltd. for an enterprise value of Rs.489 crore.

Out of this consideration, Rs.247.5 crore will be paid through preferential allotment of shares of Gokaldas Exports through a share swap.

The deal allows Gokaldas Exports to get access to the knits apparel business segment, mutually exclusive global customer base and greater access to markets in Europe and the UK. It also provides the company with geographical diversification and low-cost capacity expansion potential in the future.

Exports Growth
Exports Increasing Meaning Business Graph And Financial

Gokaldas Exports Vice Chairman & Managing Director Sivaramakrishnan Ganapathi said that the acquisition of Matrix is an important step towards the company’s goal of adding production capacity at strategic locations and enhancing value propositions to customers. “It is strategically relevant, possesses a good complementary customer base, operationally strong and above all, a leader in its own sphere,” he said.

The Matrix Clothing Group operates out of Gurugram, Haryana and is a men’s, ladies and children knitwear apparel for renowned brands. It has exposure to Europe, the UK and North America. Matrix also has five manufacturing facilities, four of which are in Gurugram, with the other one in Ranchi, Jharkhand. The company is run under the leadership of Gautam Nair.

Gokaldas Exports also reported its December quarter results on Thursday and Ganapathi said that the company has overcome most of the business headwinds prevalent in the earlier quarters. “We will stay focused on improving operating parameters and remain confident in the medium-to-long term prospects of the company,” he added.

JM Financial was the advisor to Gokaldas Exports for the transaction

and Wazir Advisors was advisor to Matrix Clothing.

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