Welspun India Ltd. (WIL), a fully integrated home textile manufacturer, which is also one of the largest global home textile players in the world, is trying to revive ties with US retailer Target that severed ties with the former following ‘Egyptian Cotton controversy’.
Welspun was alleged to be passing off cheaper sheets as premium Egyptian cotton and eventually got E&Y on board to clean its supply chain.
BK Goenka, Chairman, Welspun Group, said, "We did accept our mistake and voluntarily set up audit in place. Unfortunately, the textile supply chain is not as robust as that in automobiles. However, now that the root cause of the problem has been identified, we would try to get back Target and as a company, we would go back full steam in business in next one year."
He also added, "All customers are important to us and no one except Target snapped ties."
The company would manufacture carpets, area rugs and carpet tiles in the new facility at Anjar, Gujarat. The facility will have an annual capacity of approximately 7 million square meters. Most of this capex will be done over next 18 months and the upcoming facility will house one of the most modern plants in the country.
Goenka said, "When we achieve 75 percent capacity utilisation, this venture should do a turnover of Rs 1000 cr."
Goenka said the project will provide direct employment to 2000 people and indirect employment to 3000 others.
He further added, "Flooring solutions has immense potential as a growing business. We believe that this segment will benefit from the synergies with our existing product line and customer base thereby creating strong growth opportunity for the domestic as well as international market."