US private equity giant Blackstone Group has bought a majority stake in India's largest garment manufacturer and exporter, Gokaldas Exports, according to a statement, at an estimated cost of 165 million dollars.
Blackstone will acquire a 50.1 percent stake in the Bangalore-based company from its founders, Madanlal Hinduja, Rajendra Hinduja and Dinesh Hinduja, who will remain in control of Gokaldas, the statement by the two companies received here Tuesday said. Gokaldas makes garments for brand names such as Nike, GAP, Old Navy, Banana Republic, Tommy Hilfiger and Abercrombie and Fitch for export markets.
"With its global reach and deep relationships, Blackstone is an ideal partner to help us realise our vision of building a global industry leader," Gokaldas Managing Director Rajendra Hinduja said. "With Blackstone's relationships across the world, our customer profile is likely to get a significant impetus," he said, adding the deal should put the firm on "a higher growth trajectory."