Welspun Living eyes ₹1,200 crore from domestic branded business by FY27

Welspun—one of the country’s largest textile manufacturers—sells bath linen (towels, robes), bed linen, rugs and carpets and advanced textiles across the world. It operates both as a business-to-business as well as business-to-consumer company supplying its products to major retailers like Walmart and Ikea. It has been the official towel supplier of The Championships, Wimbledon since 1988. In fiscal 2024 the company reported total income of ₹9,825.1 crore.

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In fiscal 2023—85% of the company’s products were sold globally, with more than 61% being sold in the US, 15% in the UK and Europe, and the rest in the Middle East, Australia, New Zealand, and Japan. India is still a small contributor to the company’s overall annual turnover.

However, Goenka said this is set to change as more home owners switch to branded home textiles and furnishings. The trend picked up especially post-covid as more consumers spent time at home. In FY24, the company’s domestic revenue comprising brands Spaces, Welspun and floorings—stood at ₹576 crore.

Tapping into India opportunity

Its domestic consumer business comprises the brands Spaces and Welspun. Spaces sells bedsheets, rugs, and mattresseses, among other things; Welspun sells more mass-market towels, etc. Floorings could be another ₹500 crore business in India by fiscal 2027.

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“When I talk about the home textile brand i.e. Spaces and Welspun, by 2027 we are looking at around ₹1,200 crore…I feel this market (India) is growing at a rapid pace. However, last year has been a little slow—India’s GDP grew at a pace of around 7% but the growth came in on the back of development, infrastructure; consumption growth was a little slow," Goenka said in a virtual interview with Mint.

“We are looking at India as a very big opportunity," she said, adding that the domestic branded business could jump well over ₹1,200 crore.

Welspun operates the world’s largest facility for home textiles in Vapi and Anjar, both in Gujarat, along with a flooring facility in Telangana.

In 2021—India’shometextilesector, comprising products such as terry towels, bed sheets and spreads, pillow cases, curtains, and rugs and carpets stood at ₹55,000 crore; India derives as much as 60-70% of its revenue from exports. The US and the European Union account for over 80% of these exports, with big-box retailers of essentials and departmental stores among the major customers,according to a note by Crisil Ratings.

The domestic market is largely unorganized with a few large branded players such as Bombay Dyeing, Welspun, and D’Decor, among others.

Category expansion

Goenka said the company could expand into different categories in India. “It is the entire ecosystem. It's not just the mattress or the pillow, it's the entire utility system and the bedding that you need. Gifting is another opportunity for us. The missing piece would maybe be home accessories," she said.

Welspun is present in over 600 towns and 20,282 multi-brand outlets. Brand Spaces is present in 32 exclusive brand outlets (EBOs) with plans to touch 150 EBOs by FY27.

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In a year's time the company will launch Christy in India. Christy is the company's more high-end brand that sells towels, bedsheets, bath robes, duvets etc.

“So we are covering different levels of consumers that are evolving," she said. Christy will be retailed through luxury multi brand home decor stores. Globally it also has a portfolio of licensed brands including Martha Stewart and Scott Living and owned brands including the 170 year legacy brand, Christy.

Goenka said the company is well-placed to service domestic demand through its existing factories. For this, Welspun is working on a strategy to reduce bottlenecks across all its facilities, she said.