Gokak Textiles Ltd has announced plans to divest its underperforming knitwear manufacturing unit located at Marihal, Belagavi district, Karnataka, for ₹19.50 crore. The move is part of the company’s ongoing efforts to streamline operations and exit non-core, loss-making businesses.
The Marihal unit, established in 1995 on 15.65 acres of freehold land at Bagalkot Road, was originally set up to serve export markets but gradually expanded to domestic sales under third-party outlets and its own brands. Over the years, however, the business has seen a steady decline. Specialized garmenting equipment such as fabric dyeing and knitting machines were relocated to the company’s mills division at Gokak Falls in 2015–16, leaving only cutting and stitching operations at the facility.
For FY 2024–25, the unit generated turnover of ₹5.05 crore, contributing 5.17% to Gokak Textiles’s total revenue from operations. As of March 31, 2025, the unit’s net worth stood at a negative ₹41.15 crore, accounting for 26.02% of the company’s total negative net worth. The Board of Directors had earlier approved a plan to identify a buyer for the plant, which was valued at ₹21.49 crore as of May 15, 2025. The company has now entered into a sale agreement with M/s V. G. Parekh & Co., a Vijayapura-based real estate development and leasing firm with operations across Karnataka. The buyer does not belong to the promoter group, and the transaction does not constitute a related-party transaction.
Subject to shareholder approval via postal ballot under Section 180(1)(a) of the Companies Act, 2013, and compliance with Regulation 37A of SEBI’s Listing Regulations, the sale is expected to be completed by January 2026.