Welspun India forays into flooring solutions with Rs 600-cr carpet plant

The facility in Anjar, Gujarat will manufacture carpets, area rugs and carpet tiles.

Leading home textiles company Welspun India Ltd. on Wednesday announced its foray into flooring solutions with the foundation stone laying of its Rs 600 crore facility in Anjar, Gujarat to manufacture carpets, area rugs and carpet tiles.

To be commissioned in next 12 months, the new plant is expected to generate a revenue of around Rs 1,000 crore for Welspun India, said B K Goenka, chairman, Welspun Group.

"With this plant, our focus towards home textiles will be strengthened. This will create large import substitutes. This plant will add another Rs 1,000 crore to the current Rs 6,000 crore of revenue. In next 2-3 years, we are expecting a growth of 10-15 per cent," said Goenka.

The carpet facility will have an annual capacity of approximately 7 million square meters, with most of the capex to be done over next 18 months. Welspun India looks to create direct and indirect jobs of over 7000 through the new facility in the Kutch region.

"Flooring solutions has immense potential as a growing business. We believe that this segment will benefit from the synergies with our existing product line and customer base thereby creating strong growth opportunity for the domestic as well as international market. The investment represents our ongoing pursuit of expansion and is a testimony of our strength as one of the leading manufacturers globally," said Goenka.

Meanwhile, talking about the group's recent fiasco with Target, Goenka said that it had lost only one customer, with the rest of the business going on "as usual". "We are making supply chain more robust. We are making our supply chain more transparent and system oriented. For this, we are setting up a new internal committee," said Goenka.