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Welspun India Ltd (WIL), a global leader in home textiles and part of the $ 2.3 billion Welspun Group is expecting over two-fold rise in its domestic business from around Rs 650 crore last year to around Rs 2,200 crore by 2026, owing to the rise in demand in the Indian market and a better-performing economy.
The company which claims to be producing every fifth towel in the United States at present and also holding a major market in Europe, was hit by a dip in demand due to the economic issues in these regions last year. During the last financial year, the company’s income dipped by around 12 per cent to Rs 8,215 crore from Rs 9,377 crore in 2021-22. From around 8 per cent now, the company is targeting to increase the share of India in the topline to around 12-15 per cent by 2026.
“Last year, the whole world was going through turmoil. In terms of commodities, cotton prices went up over 100 per cent, and the container crisis and freight disruption also happened. Now, the whole correction is happening and it started in the fourth quarter of last fiscal. This year, Q1 and Q2 will be a little better. If we talk about the US economy, it expanded by 2 per cent and inflation is down at 5 per cent, the lowest in the past 22 months. Definitely, we see that all easing out,” said Dipali Goenka, chief executive officer and managing director, Welspun India.
However, it is at this time that the Indian market is turning out to be the bright spot for the company. The company clocked a growth of around 30 per cent last year in the domestic market and did around Rs 550 crore in home textiles, while its flooring business clocked another Rs 100 crore, taking the total domestic sales to around Rs 650 crore. “Definitely, India will continue to grow. Our emerging businesses are also doing well in India. We expect India business to touch around d Rs 2,200 crore by 2026 is where our domestic business is going to be from around Rs 650 crore last year,” Goenka added. Other than India, the regions that the company is betting big on are Australia, South East Asia and West Asia.
The growth in the Indian market will be driven by the company strategy of ‘Har Ghar se Har Dil Tak Welspun’. At present, 31 per cent of the global share of home textiles is coming from the US, 34 per cent from Europe and 35 per cent from the rest of the world. From around $49 billion now, the size of the global home textile market is expected to touch $60 billion by 2025. The Indian home textile market is around $7 billion now. “It is expected to touch $10 billion in the next four years. Home textiles are having a mixed bag of products and all will depend on the demand increase in the Indian market,” she added.
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