As the world turns to India and its booming consumer segment, Welspun, a conglomerate with a historically strong international presence, is strategically pivoting towards the domestic Indian market, according to a report.
Chairman BK Goenka, in an Economic Times interview, revealed that this shift is driven by India’s rapid economic growth and increasing demand. Previously, Welspun generated nearly 60 per cent of its revenue from outside India, with textiles alone comprising 90 per cent of its exports.
Recognising India’s projected economic growth to US $ 10 trillion within the next five years, Welspun aims to capitalise on this opportunity. Goenka explained that the company, which was previously export-oriented, decided to refocus inward approximately two years ago to be a part of India’s growth story.
Welspun has set an ambitious revenue target of tripling its current US $ 4.2 billion (Rs. 35,000 crore) to US $ 12.1 billion (Rs. 1 lakh crore) within the next 3-5 years, the report revealed. This growth will be driven by expansion across all its segments, including textiles, infrastructure, and warehousing. The company plans to utilise its US $ 480 million (Rs. 4,000 crore) annual cash flow, strong balance sheet (with an Ebitda-to-debt ratio of less than 0.5), and explore private equity investments, particularly in warehousing, and strategic partnerships to fund this expansion.
While prioritising the domestic market, Welspun remains committed to its global presence, with the US and Middle East remaining key regions. However, the company anticipates that India’s market growth will outpace international expansion.
Welspun has earmarked approximately US $ 3 billion (Rs. 25,000 crore) for investment in the coming years. This includes US $ 120-US $ 145 million (Rs. 1,000-1,200 crore) for textile expansion over the next 18 months, significant investments in warehousing, and US $ 1.4-US $ 1.8 billion (Rs. 12,000-15,000 crore) for infrastructure projects over the next 3-4 years. An additional US $ 300 million (Rs. 2,500 crore) is being invested in Sintex, a water storage solutions and PVC pipe business recently acquired by Welspun.
In the home textiles segment, where Welspun already holds a dominant position in the US market, the company aims to replicate that success in India, targeting a 25 per cent domestic market share. Welspun intends to establish itself as a household brand, leveraging its diverse product portfolio, which spans textiles, water tanks, pipes, and infrastructure solutions. The company is also transitioning its business model from business-to-business to business-to-consumer to capture greater value for shareholders and tap into India’s growing consumer demand.
Welspun is placing a strong emphasis on sustainability and technological innovation. In response to increasing demands for eco-friendly practices from major international retailers like IKEA, Welspun plans to generate 80 per cent of its power from green sources within two years and increase its use of recycled fiber from the current 20 per cent to 35 per cent. The company is also investing heavily in artificial intelligence and machine learning to improve operational efficiency, with its 600-employee Global Capability Centre in Ahmedabad leading its digital transformation.
