Gokak Textiles to Sell Knitwear Unit for ₹19.5 Cr
Gokak Textiles Ltd. announced its Board of Directors has approved the permanent closure and subsequent sale of its knitwear unit located in Belagavi, Karnataka. The unit, established in 1995 and catering primarily to exports, has faced declining performance due to structural cost disadvantages, adverse industry conditions, and operational unviability. The sale, including land, building, and machinery, is agreed at ₹19.50 Crores with M/s V. G. Parekh & Co. The transaction is subject to statutory and regulatory approvals. The knitwear business contributed 9.76% to the total revenue in FY26 but had a negative net worth of ₹4,192.55 lakhs, representing 21.58% of the company's negative net worth. The sale is expected to be completed by October 2026.
Key Highlights
- Board approves closure and sale of knitwear unit for ₹19.5 Cr.
- Unit closure due to declining performance and operational unviability.
- Sale includes land, building, and machinery on an 'as is where is' basis.
- Transaction subject to regulatory and statutory approvals.
- Expected completion by October 2026.
Price Impact
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