India-based, home textiles manufacturer Welspun India Ltd., recently revealed that it is trying to recreate ties with US retailer Target Corp., which severed ties with Welspun following Egyptian Cotton controversy.
The manufacturer was alleged to be selling cheaper sheets disguised as premium Egyptian cotton and eventually got E&Y on board to clean its supply chain. Welspun Group Chairman, B K Goenka told an Indian daily, “We did accept our mistake and voluntarily set up audit in place. Unfortunately, the textile supply chain is not as robust as that in automobiles. However, now that the root cause of the problem has been identified, we would try to get back Target and as a company, we would go back full steam in business in next one year.”
Also Read – Jolt for Welspun, Target terminates business ties
On the sidelines of launching a Rs. 600 crore flooring solutions facility in Anjar, Gujarat, Goenka further averred that all customers are important to them and no one except Target severed ties.
The company would manufacture carpets, area rugs and carpet tiles at the new facility which is expected to have an annual capacity of approximately 7 million square metres. Most of the investment will be done over next 18 months and the upcoming facility will house one of the most modern plants in the country.
Goenka added that the 75 per cent capacity utilization of this venture is expected to do a turnover of Rs. 1,000 crore and the project would provide direct employment to 2,000 people and indirect to 3,000 others.
