Gokuldas Exports has commenced commercial production at its new manufacturing unit in Tumkur, Karnataka. The unit will add about 4.5 per cent to its current capacity. The company currently operates at peak utilization levels and has a robust order book for the next six months. It plans to spend Rs 120 crore over the next two years to generate incremental revenue worth Rs 450 crore. The company also aims to augment its capacity over the near term, to meet demands and clear production backlog from the first quarter of FY2021-22. As per the annual report, the company anticipates substantial revenue growth in FY2021-22 in line with these trends.

Indian textile exports are at the threshold of a strong growth on the back of a vibrant retail stores and e-commerce demand in key markets like the US and Europe. India’s share in global apparel trade has so far been small. It can now look for more growth opportunities with large brands realigning their supply chain to de-risk from the effect of COVID-19, and looking at a more balanced approach for sourcing.

The Indian government has also extended the Rebate of State and Central Taxes and Levies (RoSCTL) up to FY2023-24, to provide clarity to exporters and push for growth in the sector over a longer-term period. The Production-Linked incentive (PLI) scheme could boost also growth in the industry.