A global leader in home textiles and part of the $2.3 billion Welspun Group, is expecting its home textile business to double from around Rs 650 crore last year to around Rs 2,200 crore by 2026 due to increased demand in India . markets and a better performing economy.
The company which currently claims to produce one in five towels in the United States and also holds a major market in Europe, saw a decline in demand last year due to economic issues in these regions. During the last financial year, the company's income fell by nearly 12 per cent to Rs 8,215 crore in 2021-22 from Rs 9,377 crore. The company now aims to increase India's share in the topline from around 8 per cent to around 12-15 per cent by 2026.
“Last year, the whole world was going through upheavals. In commodities, cotton prices soared by more than 100 percent, and there was also a container crisis and freight disruption. Now, the overall recovery is happening and it started in the fourth quarter of the last financial year. Q1 and Q2 will be slightly better this year. If we talk about the US economy, it has grown by 2 per cent and inflation is at 5 per cent, which is the lowest in the last 22 months. Certainly, we are seeing that everything is getting easier,'' said Deepali Goenka, CEO & MD, Welspun India.
However, the Indian market is turning out to be a bright spot for the company at the moment. The company registered a growth of nearly 30 per cent in the domestic market last year with a turnover of around Rs 550 crore in home textiles, while its flooring business clocked a turnover of Rs 100 crore, taking the total domestic sales to around Rs 650 crore. “Definitely, India will continue to grow. Our emerging businesses are also doing well in India. We expect the India business to reach around Rs 2,200 crore by 2026, while our domestic business is going to exceed last year's around Rs 650 crore,' Goenka said. Apart from India, the regions where the company is betting big are Australia, South East Asia and West Asia.
The growth in the Indian market will be driven by the company's strategy of 'Welspun from every home to every heart'. Currently, 31 per cent of the global share of home textiles is coming from the US, 34 per cent from Europe and 35 per cent from the rest of the world. The global home textile market size is expected to grow from around $49 billion now to $60 billion by 2025. The Indian home textile market is now worth around $7 billion. It is expected to reach $10 billion in the next four years. Home textiles has a mix of products and it will all depend on the growth in demand in the Indian market,” he said.
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