Gokaldas Exports Ltd. will absorb the BRFL Textiles Pvt. Ltd. to create a fully integrated apparel and textile business. This move, approved by the Gokaldas board, will enhance the company’s fabric capabilities and research in apparel innovation. BRFL shareholders will get 40 Gokaldas shares for every 3,581 BRFL shares, along with some cash. Gokaldas aims to use this move to better navigate challenges like the recent 50% tariff on Indian garment exports to the US.

The two companies work in complementary areas, Gokaldas focuses on garment design, manufacturing, and exports, while BRFL specializes in fabrics such as cotton, linen, viscose, polyester, and blends. BRFL owns well-known brands like Bombay Rayon, LinenVogue La Classe, and Giza Classe. The merger will help Gokaldas secure fabric supply, improve delivery speed, and strengthen R&D to serve customers more efficiently.

According to Gokaldas CEO Sivaraman Ganapathi, the merger will also reduce costs through economies of scale and better use of resources. It will allow the combined entity to respond faster to market needs and develop new products without delays. Earlier this year, Gokaldas had already bought 19% of BRFL by subscribing to optional convertible debentures, showing its long-term interest in the partnership.