Monday, January 14, 2008

Gokaldas plans manufacturing units in Hubli, Mangalore

Bangalore Jan 9: Apparel exports major, Gokaldas Exports, is planning to set up manufacturing units at Hubli and Mangalore in Karnataka with a combined production capacity of four million garments a year.
The initiative was part of the Bangalore-based company's move to tap tier-II cities where the labour and rental costs were less, Rajendra J Hinduja, Executive Director (Finance), Gokaldas Exports said here.
"Today, rentals in Bangalore are sky-high. It's Rs 15 per square feet (rent per month) for industrial sheds. Far too expensive. It should have been Rs 7-8 per square feet to sustain costs," he said.
The proposed Hubli and Mangalore units would each have a production capacity of two million garments a year. The company's annual total production capacity is 24 million garments.
Hinduja said its manufacturing facility at Hyderabad would be commissioned in April.

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