Gokak Textiles Closes Garment Division
Gokak Textiles Limited has announced the closure of its Garment Division (Knitwear Unit) located in Marihal Village, Belagavi, effective October 6, 2026. The decision follows an application filed under the Industrial Disputes Act, 1947, seeking permission for closure due to declining performance. As per the Act, since no order was received within 60 days of the application, permission is deemed granted. Consequently, all worker services are terminated, with full and final settlements to be made as per labor laws. The company plans to sell/dispose of the division's land, building, plant, and machinery after obtaining necessary approvals. The knitwear unit, established in 1995, primarily focused on exports, with cutting and stitching facilities now shifted to the company's Mills Division.
Key Highlights
- Gokak Textiles is closing its Garment Division (Knitwear Unit) effective October 6, 2026.
- Closure is due to declining performance of the knitwear business over recent years.
- All worker services are terminated; full and final settlements will be processed.
- The company intends to sell/dispose of the division's assets post-closure.
- Cutting and stitching facilities have been relocated to the Mills Division.
Price Impact
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