Welspun Living sees major home-textile opportunity from India-UK trade deal
“We will grow at a double-digit growth. Having said that, we already front-end our investments and the demand that is there is not in the position of just being a manufacturer, but as a partner where the strategic partnerships are what we are looking at.”
Goenka said global retailers are increasingly looking at India because of its stable democracy, strong supply chain, cotton availability, large micro, small, and medium enterprises (MSME) ecosystem and infrastructure. She said discussions with retailers had already started when the FTA was announced, with conversations now focused on partnerships over the next two to three years.
She also believes home textiles could benefit more than apparel from the trade agreement because India has an integrated supply chain covering cotton, spinning, weaving and manufacturing.
“Garments and home textiles are very different. Garments actually are manufactured as a fabric platforming across the globe and they can do it. For home textiles, it’s a complete integrated supply chain, which we have as India.”
The US remains Welspun Living’s biggest market, accounting for about 30% of home consumption globally. Goenka said the company’s scale gives it an advantage in serving this market, with Welspun producing around 1 million towels every day, primarily in India.
On tariffs, Goenka said the company is operating in a more level playing field, while retailers have already incorporated tariffs into their pricing. She added that uncertainty has become a part of the global trade environment.
Despite weather-related disruption at its Vapi facility, Welspun Living remains confident of maintaining double-digit growth for FY27. The plant is now operating at 70-80% capacity, while the company expects the impact on the full-year business to remain limited. Management also continues to target low-teens margins of around 12-13%.Watch the full conversation here
The company’s domestic retail business is another growth opportunity. Goenka expects the business to reach ₹1,000 crore in the near future, supported by rising consumption in India and the growth of brands such as SPACES and Welspun.
For its flooring business, the company expects growth to remain calibrated in the near term because of difficult macro conditions, but remains focused on protecting margins through its product mix.
Mumbai-based Welspun Living shares have gained nearly 80% over the past year, taking the company’s market capitalisation to around ₹19,428.84 crore.
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Source: www.cnbctv18.com