Welspun India will launch more global brands in the domestic market as part of its strategy to project itself as a leading home fashion outfit in the country. Last year, the company has acquired Tommy Hilfiger brand for home linens.
The company is also contemplating to set up a cotton yarn manufacturing unit to fully integrate its business process.
Welspun has drawn out a Rs 600-crore plan to expand its towel unit and set up a new production unit for bed sheets, which it used to outsource earlier.
At present, the company’s product line includes bed covers, towels, bath robes, bedspread, table linen, pillow covers and cushion covers, among others.
Anshuman Singh, chief executive officer of Welspun India, said that the company will look to introduce more global brands in India. He was in Kolkata for the launch of Welspun’s exclusive retail outlets in city.
The company is retailing its product under three brands, Spaces for mid priced products, Tommy Hilfiger for premium ranges and Welspun Factory Outlets for low price point products.
Currently, the company has 21 retail outlets across the country. It is planning to add another 180 in the next three years.
According to Singh, reputed apparel brands such as Levi’s, Docker’s and Ralph Loren have their presence in the home textile segment. Singh said that the company has recently acquired a home linen brand Nortika for the US market and would sell its products under this brand name soon.
The company now exports towels to global retail giants such as Walmart and GAP. “We shall start selling our product in the US under Nortika. Now the export market accounts for more than 90 per cent of our turnover,” added Singh.
For the year 2004-05, Welspun reported a turnover of around Rs 470 crore.
The domestic sales accounted for Rs 25 crore.
But the company is bullish on the domestic market. “Due to our renewed thrust on retailing, the domestic sales is likely to touch Rs 150 crore by mid 2006-07,” Singh added.