Welspun India has commenced operations at its newly built flooring unit. Welspun Flooring commenced its operations last month. Till date the company has spent around Rs 810 crore on the project so far. As part of the sales network, 42 distributors and around 450 dealers have been appointed so far pan-India. The company is targeting a revenue of Rs 150-200 crore during the current financial year.
“Our emerging businesses are gaining traction. We are excited about our recently commissioned flooring solutions plant, which could provide tremendous growth opportunities in the domestic market as well as the export market,” said Mr. B.K. Goenka, Chairman, Welspun Group.
Flooring unit is a major diversification programme of the company which is mainly into home textiles manufacturing business. In anticipation of slowdown in the core textile business, the company has invested in the flooring business. The company will mainly focus on domestic market. However, post the US-China trade war, even the export market has become an opportunity as the average duty on these products now ranges from 15-25%.
The company plans to manufacturer wall-to-wall carpets, artificial grass, hard flooring and carpet tiles. Wall-to-wall carpets will be mainly meant for hospitality sector. However, the company will first commission carpet tiles plant. Carpet tiles will be mainly targeted at multinationals and IT companies. At present, carpet tiles worth USD 125-150 mn is being imported annually. There are no domestic manufacturers in this segment and the company plans to capture this market.
Welspun India Ltd, part of US$ 2.7 billion Welspun Group, is one of the world’s largest home textile manufacturers. With a distribution network in more than 50 countries and world class manufacturing facilities in India, it is the largest exporter of home textile products from India. Welspun is supplier to 17 of top 30 global retailers.