After being hit by the global recession for the last few months, Welspun India, one of the largest textile companies in India, expects exports to bounce back by the end of next fiscal.
By tapping smaller cities through a franchise model, the company hopes to deepen its reach in the domestic market. By opening 1,000 stores in the last quarter, the company has increased its store count to 10,600 stores and is targeting 50,000 stores by FY ’26, generating a revenue of Rs. 1,700 crore from the home textile and domestic flooring business.
CEO and Jt. MD Dipali Goenka said the demand for home textiles in the US and Europe was hit by mild recession and high inventory due to logistics constraints during the Covid pandemic.
Retailers raised prices due to high incidental costs which led to a drop in demand but retail prices have started falling with the easing of raw material prices and logistics costs, she said.
A revenue of US $ 1 billion was logged in by home textiles, with the emerging business contributing about 19 per cent and growing at a CAGR of 25-30 per cent.
“We already have a roadmap of 25,000 stores. Besides MDUs, we are also looking at the franchise model as the brand gets stronger,” said Dipali Goenka.
