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Welspun Living

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Welspun Living Limited
FormerlyWelspun India Limited
Company typePublic
IndustryTextiles
Founded1985
FounderBalkrishan Goenka[1]
Headquarters
India
Key people
RevenueIncrease ₹9,825 crore (US$1.2 billion) (FY24)[3]
Increase ₹681 crore (US$82 million) (FY24)[3]
ParentWelspun Group
Subsidiaries
WebsiteOfficial website

Welspun Living Limited, previously known as Welspun India Limited,[4] is an Indian textile manufacturing company headquartered in Mumbai.[5] Founded by Balkrishan Goenka in 1985,[6] the company produces home textile products such as bed linen, terry towels, rugs, and yarn.[7] Welspun operates several brands, including Christy,[8] Spaces and Welhome,[9] and is led by Dipali Goenka, who serves as the CEO and managing director.[10]

History

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Founded in 1985 by Balkrishan Goenka as Welspun Winilon Silk Mills in Palghar, Maharashtra,[11] Welspun India initially focused on polyester texturizing.[12] In 1991, the company went public through an initial public offering (IPO) and subsequently changed its name to Welspun India Limited.[6] Towel manufacturing and export operations began in 1993 with a new plant in Vapi, Gujarat.[6] In 1998, Welspun secured its first outsourcing order of terry towels from Walmart.[12] Subsequently, the company began exporting towels to additional American retail majors including JCPenney, Target, Kmart, Tommy Hilfiger, Calvin Klein, Shopko and Costco, as well as retailers in Europe, Australia and New Zealand. In 2004, a new facility in Anjar, Gujarat, was established for bed linen production,[13] with a capacity of 35 million meters per annum.[8] The Toweling facility started commercial production in March 2005, and the spinning facility commenced commercial production in June 2005.[6]

In 2007, Welspun started a bedding sets facility in Mexico.[14] In 2009, the company demerged its Sales & Marketing and Investment divisions into two separate entities – Welspun Global Brands Ltd. and Welspun Investments & Commercials Ltd.[15][16] In 2014, Welspun launched a new spinning facility at Anjar, Gujarat.[17] In 2017, Welspun entered the flooring and smart textiles sectors, expanding into in the Middle East, Japan, Australia, and the EU.[18] On 9 February 2017, the company partnered with the Cotton Egypt Association (CEA) to promote Egyptian cotton products globally.[19][20]

Acquisitions and subsidiaries

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In 2006, Welspun India acquired an 85% stake in CHT Holdings, the holding company of the UK's largest towel firm, Christy, for the equivalent of US$28.7 million.[21] Christy's existing management retained a 15% stake in the company and continued to be involved in its operations. Following the acquisition, Rajesh Mandawewala, joint managing director of Welspun, was appointed chairman at Christy.[22]

As part of a demerger move in September 2008, Welspun separated its Sales & Marketing and Investment divisions, creating two distinct entities—Welspun Global Brands Ltd. (WGBL) and Welspun Investments & Commercials Ltd (WICL). WGBL was specifically responsible for the sales and marketing division of Welspun's home textile business.[23]

In 2012, WGBL was reintegrated into Welspun India Limited. However, the marketing business of Welspun India was separated and transferred to a third firm called Welspun Retail Ltd (WRL). In the same year, certain overseas investments of Welspun India Limited (WIL) were moved to WRL.[24] Welspun Retail was later renamed Welspun Global Brands Ltd to maintain its marketing identity.[25]

Welspun USA

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Welspun USA Inc is a subsidiary of Welspun India Ltd.[26] Welspun USA operates as one of the largest home textile divisions of the 3 billion dollar Welspun Group. Welspun USA has become a key supplier to 9 of the top 10 American retailers, manufacturing 1 in 5 towels in the US. Their product range includes Bath Towels, Bath Rugs, Accent & Area rugs, Down Alternative Comforters and Mattress Pads, and Fashion Bedding.[27] With over 28 active patents, Welspun has garnered some attention for its HygroCotton technology, which has temperature regulating benefits and hollow core yarn to get softer with each wash.[28] It was established in 2000, as a wholly owned subsidiary of Welspun Retail Ltd.[29]

Key people include Dipali Goenka, Executive director, Julie McKenzie, President & CEO.[30]

Controversies

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Target, a US-based retail corporation, terminated its contract with the company following a dispute over cotton supply.[31] In a statement issued on August 19, 2016, Target Corporation noted that its vendor, Welspun Global Brands (Welspun), was one of the producers of 500-thread count sheets made from Egyptian Cotton under the Fieldcrest label for Target.[32] Target raised concerns, alleging that Welspun had substituted another type of non-Egyptian cotton during the production of these sheets between August 2014 and July 2016 without Target's knowledge.[33] In response, Target withdrew the affected products, offered customers full refunds, and severed ties with Welspun in August 2016.[34] Walmart and Bed Bath & Beyond also discontinued selling the implicated linens later that year.[35][36][37]

On August 20, 2016, Welspun India issued a statement confirming that it encountered a product specification issue with one client program of its subsidiary, Welspun Global Brands. Welspun India stated that it had initiated immediate actions to investigate the root cause of the issue and was appointing one of the Big Four external audit firms to audit its supply systems and processes. Welspun emphasized that this was an issue of the highest priority and would take all necessary steps to address it.[38][39]

References

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  1. ^ "Welspun India: Out of the Woods". Forbes India. Retrieved 7 July 2023.
  2. ^ "Welspun expects ₹1,700-cr revenue from retail biz by FY26". Business Line. Chennai. 16 February 2023. Retrieved 7 July 2023.
  3. ^ a b "Welspun Living Q4 net profit rises 16 percent to Rs 146 crore". FashionNetwork.com. Retrieved 2 May 2024.
  4. ^ Ksheerasagar, A. (26 October 2023). "Welspun Living shares rise 107% in seven months; is there more upside left?". Mint. Retrieved 6 February 2024.
  5. ^ "Welspun India Ltd Analyst report" (PDF). Sharekhan.
  6. ^ a b c d Gopalan, Krishna. "From Vapi to Wimbledon". Outlook. New Delhi. Retrieved 6 February 2024.
  7. ^ "Welspun's BK Goenka: Spinning Solutions". Forbes India. Retrieved 6 February 2024.
  8. ^ a b K, Muthukumar (10 July 2006). "Weaving new dreams". The Economic Times. ISSN 0013-0389. Retrieved 6 February 2024.
  9. ^ "Welspun India Ltd analyst report" (PDF). Ventura.
  10. ^ Law, Abhishek (6 September 2021). "Welspun India looks at ₹730 crore turnover from e-commerce". Business Line. Chennai. Retrieved 6 February 2024.
  11. ^ "New Spins". Businessworld. Archived from the original on 7 October 2017.
  12. ^ a b "Dream weaver". India Today. 27 November 2008. Retrieved 6 February 2024.
  13. ^ "Welspun targets $2 billion turnover by 2020". The Textile Magazine. 6 March 2014. Retrieved 6 February 2024.
  14. ^ Merchant, Krishna (14 September 2015). "Will Welspun India continue to spin higher growth?". Mint. Retrieved 6 February 2024.
  15. ^ Basu, Aniruddha; Pandey, Swati. "Welspun India to list 2 spun-off entities in a month". Reuters.
  16. ^ "Welspun India to merger with Welspun Global Brands". Business Standard. India.
  17. ^ Seth, Neha (16 August 2017). "The Weaver Welspun India". Outlook Business. Retrieved 6 February 2024.
  18. ^ "Welspun India expands into flooring solutions". Business Line. Chennai. 14 December 2016. Retrieved 6 February 2024.
  19. ^ Ghosal, Sutanuka (9 February 2017). "Welspun India Ltd enters into an agreement with Cotton Egypt Association". The Economic Times. ISSN 0013-0389. Retrieved 6 February 2024.
  20. ^ "Welspun India To Promote Egyptian Cotton Through Tie-up With Industry Association". Forbes India. Retrieved 6 February 2024.
  21. ^ "Welspun buys UK's Christy". The Economic Times. 4 July 2006. ISSN 0013-0389. Retrieved 6 February 2024.
  22. ^ "Welspun wraps up UK's Christy". Business Standard. India.
  23. ^ "Welspun hives off distribution, investment divisions". The Economic Times. 17 September 2008. ISSN 0013-0389. Retrieved 6 February 2024.
  24. ^ "Welspun India to merger with Welspun Global Brands". Business Standard. India.
  25. ^ "HC approves merger of WGBL with Welspun India". The Textile Magazine. 1 January 2013. Retrieved 6 February 2024.
  26. ^ "Agreement keeps Welspun in Grove City | ThisWeek Community Newspapers". 24 June 2009. Retrieved 6 January 2011.
  27. ^ "NexCen Brands, Inc., Announces Strategic Partnership with Welspun USA to Expand Waverly Brand" (Press release). New York: NexCen Brands. 22 January 2008. Retrieved 6 January 2011 – via Prnewswire.com.
  28. ^ "Cotton That Keeps Up". New York: Hygrocotton.com. 20 November 2018. Retrieved 15 February 2019.
  29. ^ "WELSPUNIND History | Welspun India Ltd Company History & Profile". Economictimes.indiatimes.com. Retrieved 18 February 2011.
  30. ^ "Welspun USA Brings on New CEO". hometextilestoday.com. 15 August 2017. Retrieved 15 February 2019.
  31. ^ "Welspun India shares crash after US retailer ends contract". The Indian Express. 24 August 2016. Retrieved 6 February 2024.
  32. ^ "Wal-Mart Stores Faces Lawsuit over Fake Egyptian Cotton Sheets". Fortune. Retrieved 6 February 2024.
  33. ^ Seth, Neha (16 August 2017). "The Weaver Welspun India". Outlook Business. Retrieved 6 February 2024.
  34. ^ "Welspun India shares slump after Target severs ties with co". Reuters. Retrieved 6 February 2024.
  35. ^ "Walmart, Target, Bed Bath must face lawsuit over fake 'Egyptian' cotton - New York judge". Reuters. Retrieved 6 February 2024.
  36. ^ "Lawsuits against Welspun, Wal-Mart roil cotton industry". mint. 15 November 2016. Retrieved 6 February 2024.
  37. ^ "Walmart stops selling Welspun's Egyptian cotton products". The Hindu. 10 September 2016. ISSN 0971-751X. Retrieved 6 February 2024.
  38. ^ "Welspun India slumps after US based client severs ties with company". Business Standard.
  39. ^ "Welspun India extends slide post severance of ties with US client". Business Standard.
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