Welspun India’s flooring project is expected to be commissioned by September and the trial runs have already started at the unit. The company has already invested Rs 850 crore on the project and another Rs 250-300 crore will be spent. The company is targeting a revenue of Rs 150-200 crore during the current financial year. When the unit will be fully commissioned, it can generate Rs 3,000 crore turnover.
Flooring unit was 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.
Even in case of artificial grass, which is used for landscaping and sport facilities, whole of the current requirement is imported. On the other hand, hard flooring material will be used mainly in residential and commercial segment. Products will be marketed under Welspun brand using company’s distribution channel. The company is planning to price these products on import landed cost basis. The company is aiming to reach 50 cities by the end of current financial year.