Welspun India to invest $3 mn on promotion of Egyptian cotton

Deal would allow use of the Egyptian cotton logo on the packet of Welspun products for five years

After a one-time hit of Rs 501 crore on its balance sheet, home textile major Welspun India has initiated damage control measures to regain the credibility it lost when leading US chains Target and Walmart pulled out its products from their stores over concerns that these may not be made of Egyptian cotton as labelled.

Welspun has entered into an agreement with the Cotton Egypt Association (CEA) to promote and market Egyptian cotton products worldwide at an investment of $3 million. The agreement would allow use of the Egyptian cotton logo on the packet of Welspun products for five years and also gain better access to Egyptian cotton supply.

Welspun is also exploring options to set up a manufacturing facility for Egyptian cotton home textile products in Egypt. “We foresee an increase in demand for Egyptian cotton and find an ideal condition for making Egypt one of our hubs for sourcing and manufacturing Egyptian cotton products. We are looking at the best option to utilise this opportunity,” said Dipali Goenka, chief executive officer and joint managing director, Welspun India.