Welspun to expand India exposure

Mumbai-based $3 billion Welspun Group is a reputed international supplier of home textile

products amongst others and is one of the major players in the home textile segment in India. The Group’s home textile consists of products like bed sheets, bath rugs and towels.  At present, its total exposure in the export market is around 93 per cent. In keeping with the buoyant Indian market, the company’s textile division plans to increase its exposure in India to nearly 25 per cent of its total production. It also plans to expand its retail presence in the country by 20-30 per cent on an annual basis. At present, industry officials point out that the Indian market has fared better compared to the other global economies. As textile companies have performed well in the domestic market, they have managed to offset the slump in the export markets.

Rajesh Mandawewala, MD, Welspun Group says given the growth being witnessed in India, they will increase their presence in the domestic market. The target is to have around 25 per cent exposure in the domestic market in the next five years. The typical investment required for a store, including inventories, is pegged at around Rs 75 lakh to Rs 1 crore. Currently, Welspun has around 170 stores across the country.

Rising cotton prices is also a major concern in the export markets. Within a period of three months, cotton prices have moved from Rs 43,000 per candy in November-end to around Rs 58,000 per candy. While textile products available on shelf at present are priced according to December 2010 cotton prices, the full impact of the increase is expected to be seen by June-July 2011. Mandawewala says while they we have not seen any cancellations, there is surely some amount of postponement in orders owing to the rise in prices.