Home textile manufacturer Welspun India is targeting a $650 million revenue (about Rs. 3,547.7 crores) by the end of this fiscal on the back of solid order books, a senior company official has said.
“In home textiles, India’s competitive position has improved as compared to China which is facing shortage of cotton and increasing wage rates. We have very good order books and are hoping for USD 600-650 million income by the end of this fiscal,” Welspun Group Managing Director Rajesh Mandawewala told PTI.
Welspun India had posted sales growth of 15 per cent at Rs. 802.2 crores for the quarter ended September 30, 2012, compared to Rs. 699.2 crores in the same quarter of the previous fiscal. It is indeed targeting $1 billion revenue over the next three-four years.
The home textiles manufacturer, operating at about 80-85 per cent of its capacity, is planning to ramp up its manufacturing strength in all its segments by 30-35 per cent in three-five years.
The company has two manufacturing units at Vapi and Anjar in Gujarat with a current capacity of 50,000 tonnes in towel, 50 million metres in bed linen and 12 million units in rugs.
Welspun India, which gets 94 per cent of its revenue from exports, is also planning to increase its share in the domestic business to Rs. 100 crores this fiscal, on the back of enhanced distribution network.
“We have two brands in the country, Spaces Home & Beyond and WELHOME that offers bed, bath, kitchen, dining and living furnishing needs. These products are available in its 150 shop-in-shop and six-seven factory outlets and distributors. We are now planning to increase our shop-in-shop to over 200 by the end of this fiscal,” Mr. Mandawewala said.
The company is also keenly looking at making a foray into the technical textile segment. “We have already commissioned a small line for producing technical textiles and are exploring the opportunities. We will look at expanding it in 2-3 years if things take off,” he added.
Talking about exports, the Managing Director said: “There is definitely a slowdown and retailers want to reduce their orders and only want to import from reliable companies. As we are one of the top three home textile manufacturers in the world with a distribution network in 32 countries, our position continues to be strong.”
Welspun India is part of the $3.5 billion Welspun Group, a conglomerate that has presence across five business verticals – pipes, plates and coils, steel, infrastructure and energy.