# Gokaldas Exports Plans to Lift Europe to 25-30% of Exports, Invests 1.25 Billion Rupees

> Gokaldas Exports expects Europe to reach 25-30% of its exports within three to five years and is investing 1.25 billion rupees in fiscal 2027 capacity.

- Published: 2026-10-26T04:23:05+00:00
- Section: Expansion
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-26/gokaldas-exports-europe-export-share
- Source: [Reuters](https://www.reuters.com/business/retail-consumer/gap-apparel-supplier-gokaldas-eyes-doubling-europe-exports-share-cut-us-reliance-2026-10-26/)

## Key takeaways

- Gokaldas Exports expects Europe's share of its exports to rise from around 15% to approximately 25%-30% over three to five years.
- The company is investing 1.25 billion rupees, or $13.2 million, in fiscal 2027 to expand capacity and upgrade facilities.
- US apparel imports fell 7% to $49.08 billion in January-August, while Gokaldas' US spring and summer 2027 orders were stronger than the 2026 holiday season.

[Gokaldas Exports](https://akta.pro/company-profiles/00045qu/gokaldas-exports) expects Europe to nearly double its share of the company's exports, from around 15% to approximately 25%-30% over three to five years, vice-chairman and managing director Sivaramakrishnan Ganapathi told [Reuters](https://www.reuters.com/business/retail-consumer/gap-apparel-supplier-gokaldas-eyes-doubling-europe-exports-share-cut-us-reliance-2026-10-26/). The Bengaluru-headquartered apparel manufacturer and exporter designs, produces and ships more than 90 million garments a year to global fashion brands from plants in India, Ethiopia, Kenya and the UAE, according to [company records](https://akta.pro/company-data).

## Ganapathi Sets Out the Europe Export Target

Ganapathi said Europe accounts for around 15% of Gokaldas' exports and that the share should reach approximately 25%-30% within three to five years. "Europe accounts for around 15% of our exports. Over the next three to five years, we expect Europe's share to increase to approximately 25%-30%," he said.

The [European Union](https://akta.pro/company-profiles/0000mas/european-union) is expected to sign a landmark trade deal with India by the end of 2026, cutting tariffs on imports. Gokaldas is "actively holding discussions with major European retailers in preparation for duty-free trade," Ganapathi said without naming them, adding that the company is boosting capacity in India instead of moving production elsewhere.

The exporter, whose top customers include Gap, Carhartt and JCPenney, is investing 1.25 billion rupees ($13.2 million) in fiscal 2027 to expand overall capacity and upgrade facilities. Equirus Securities analyst Ronak Shah said the India-EU trade agreement could provide a medium-term opportunity to improve competitiveness, subject to implementation, product coverage and origin requirements.

US apparel imports from across the globe fell 7% to $49.08 billion in January-August, government data showed. Gokaldas' US spring and summer orders for 2027 were stronger than the 2026 holiday season, when its shipments from India rose 3%-4% from a year earlier, Ganapathi said, adding that holiday sales would provide an early indication of demand for next year.

## Gokaldas' Capacity and Acquisition Record

Gokaldas reported total income of Rs 4,065 crore for FY26, up from Rs 3,917 crore in FY25, and EBITDA of Rs 434 crore for the year, according to akta.pro company records. The same records show more than 53,000 employees across global operations and four funding rounds on record, the most recent a post-IPO equity round in October 2023 led by Catamaran.

Gokaldas acquired Matrix Design & Industries Private Ltd in February 2024 in a deal valued at Rs 489 crore to expand its apparel business and market access. In August 2023 it acquired UAE-based Atraco Group for $55 million to expand manufacturing capacity and its customer base across low-cost locations in the US, Europe and Africa.

## Earlier Gokaldas Results and Guidance

Gokaldas reported FY26 total income of ₹4,065 crore, up 4% year-on-year, while profit after tax fell 37% to ₹100 crore, driven by an estimated ₹97 crore impact from US tariffs, ScanX reported in September 2026. Ganapathi said in August 2026 that the company expects revenue of about ₹6,000 crore by March 2028, up roughly 50% from FY26's ₹4,000 crore, with BRFL adding about ₹400 crore this year and ₹1,200 crore next, CNBCTV18 reported.

AInvest reported in September 2026 that Gokaldas' Kenya operations rely on AGOA, which expires in December 2026, and that India's RoSCTL rebate ends in September 2026.

## What Comes Next for Gokaldas

The European Union is expected to sign a trade deal with India by the end of 2026, cutting tariffs on imports. Gokaldas' US spring and summer orders for 2027 were stronger than the 2026 holiday season, and Ganapathi said holiday sales would provide an early indication of demand for next year.

## Companies in this story

- [Gokaldas Exports company profile](https://akta.pro/company-profiles/00045qu/gokaldas-exports) · website: http://www.gokaldasexports.com
- [European Union company profile](https://akta.pro/company-profiles/0000mas/european-union) · website: http://europa.eu

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