Gokaldas Exports was a family-owned company that had grown into the biggest clothing exporter by the mid 2000s in India. Its creator, Jhamandas H. Hinduja, had bequeathed control of the business to three sons, each of whom brought in his own son. By the end of 2004, Gokaldas had 43 factories with 258 production lines scattered in and around the southern India city of Bangalore.
It had more than 35,000 workers, which was nearly doubled in amount in 1999-2000, and its overall sales had grown at an annual compounded growth rate of 19.67 percent over this interval. The business was valued at approximately $215 million and exported almost 90 percent of its production. Nonetheless, to preserve its already slim margins in an increasingly competitive environment, Gokaldas needed to become more efficient. Company leaders hoped to enhance gains by 10-15 percent without adding resources and COO of a third generation family member and the sportswear department, Gaurav Hinduja, became convinced that Lean would be the greatest way to make this occur.
PUBLICATION DATE: January 06, 2013 PRODUCT #: SM213A-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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