Welpsun India is expecting the exports to bounce back by end of next fiscal year after being hit by the recession. The company has plans of reaching the domestic market by touching small cities through franchise model.
Welpsun India has also opened 1000 stores in the last quarter. They have a target of reaching 50,000 by FY26 which will generate a revenue of Rs.1700 crore from home textile and domestic flooring businesses. The demand for the home textiles have been mildly hit in the USA and Europe due to the recession and the high inventory due to the logistics constraints during the COVID-19 period.
There is a brand licensing pact with The Walt Disney Company for Europe, West Asia and the Africa region which will add another region along with providing extra shelf space for the top retailers/outlets. The textile revenue is $1 billion with a contribution of 19% and a CAGR of 25-30%. The company is expecting Rs.260 crore expansion projects of flooring, Advanced Textile and Home Textile which will end the fiscal with an investment of Rs.20 crore in the March quarter.
The company’s margin was affected by the rising cost of cotton, coal and container. The fresh capex of Rs.200 crore in renewable energy will bring down cost. There is an additional capex of Rs.150 crore for maintenance capex. As per Dipali Goenka, Joint MD and CEO, Welpsun India, “We already have roadmap of 25,000 stores. Besides MDUs, we are also looking at franchise model as the brand gets stronger”.
