Gokak Textiles' board has approved the permanent closure and sale of its knitwear manufacturing unit in Marihal, Karnataka, spanning 15.65 acres.

The unit will be sold for Rs. 19.50 Cr to M/s V. G. Parekh & Co., subject to necessary approvals.

This strategic decision stems from years of declining performance and operational challenges in the knitwear business.

For the last financial year, the unit contributed Rs. 4.23 Cr to turnover (9.76% of total revenue) but carried a negative net worth of Rs. (41.93) Cr, impacting the company's overall financial health.

Completion is anticipated by October.