Welspun’s home textiles business on the way to $1 billion
Mumbai – Welspun India, the home textiles division of Indian conglomerate Welspun Group, reached several milestones during its third fiscal quarter.
Revenue increased 19.0% to approximately $327 million, and the company announced that, based on year-to-date trends, its global home textiles business is on track to reach $1 billion in sales. For the first nine months of its fiscal year, sales climbed 35.8% to around $955 million.
However, the macroeconomic environment held back earnings growth. Consolidated net income for the quarter fell 25% as expenses climbed 24%.
“The operating environment continued to remain challenging with an unprecedented and highest rise in raw material prices and global supply chain disruptions. The strong growth and improved sentiment we have witnessed over the course of the year was also somewhat affected by the arrival of the third wave of Covid, the effect of which has however been moderate so far, however we are very focused on delivering sustainable growth across all our markets,” said Dipali Goenka, CEO and Co-Managing Director of Welspun India Ltd.
As noted in its investor presentation as well as in a video posted on its LinkedIn page, Welspun India announced the following achievements during the quarter:
- S. e-commerce growth up 157.0%;
- Licensed brands growth up 45.0% in Q3 and 66.0% YTD;
- The company’s national retail business generated record sales.
Demand remains strong. For the nine-month period, manufacturing capacities operated at a high rate:
- Bath linen production was at 90% capacity, compared to 79% in the previous nine-month period.
- Bed linen was 100%, down from 80%.
- Rugs and carpets were at 83%, down from 61%.
- The Advanced Textile division’s production rates over the period were 82% for Spunlace, 55% for needlepunched and 33% for wet wipes.
Welspun India is also expanding its manufacturing footprint, with capacity increases in towels, bedding, rugs and carpets in the coming months.
BK Goenka, Welspun Group Chairman, said: “Our markets like the US and UK have shown strong consumer spending. In India, the economy is emerging from the pandemic-induced slowdown with strong demand supported by monetary policies and government fiscal stimulus.