New Delhi: Home textiles and furnishing company Welspun Living is considering ₹1,200 crore from the India branded business in FY27 and subsequently increasing revenue contribution from the domestic market on the back of rising demand for branded bedsheets, towels and cushions, said Dipali Goenka, MD & CEO, Welspun Living.
Welspun, one of the largest textile manufacturers in the country, sells bath linens (towels, robes), bed linens, rugs and tapestries and advanced textiles worldwide. It operates as both a business-to-business and business-to-consumer company and supplies its products to major retailers such as Walmart and Ikea. It has been the official towel supplier of The Championships, Wimbledon since 1988. In fiscal year 2024, the company reported total revenue of ₹9,825.1 crore rupees.
In fiscal year 2023, 85% of the company’s products were sold globally – over 61% were sold in the US, 15% in the UK and Europe, and the rest in the Middle East, Australia, New Zealand, and Japan. India remains a small contributor to the company’s total annual revenue.
However, Goenka said this is set to change as more homeowners shift to branded home textiles and furnishings. The trend accelerated especially post-COVID as more consumers spent time at home. In FY24, the company’s domestic revenue, which comprises the Spaces, Welspun and flooring brands, stood at ₹576 crores.
Taking advantage of the opportunities offered by India
Its consumer business comprises the Spaces and Welspun brands. Spaces sells bed sheets, rugs and mattresses, among other things; Welspun sells mass-market towels, etc. Flooring could be another ₹500 crore business in India by FY27.
“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 fast pace. However, last year was a bit slow – India’s GDP grew at a pace of around 7%, but the growth was on the back of development and infrastructure; consumption growth was a bit slow,” Goenka said in a virtual interview with Mint.
“We are looking at India as a big opportunity,” he said, adding that the domestic brand business could take a big leap. ₹1.2 billion rupees.
Welspun operates the world’s largest home textiles facility at Vapi and Anjar, both in Gujarat, along with a flooring facility in Telangana.
In 2021, India’s home textiles sector, comprising products such as terry towels, bed sheets and bedspreads, pillowcases, curtains and carpets, stood at ₹55,000 crore; India earns 60-70% of its revenue from exports. The US and the European Union account for over 80% of these exports, with large commodity retailers and department stores among the top customers, according to a note from the Crisil Ratings.
The domestic market is largely unorganized and features a few major brand players, such as Bombay tinctureWelspun and D’Decor, among others.
Category expansion
Goenka said the company could expand into different categories in India. “It’s the complete ecosystem. It’s not just the mattress or the pillow, it’s the entire service system and the bedding that you need. Gifts is another opportunity for us. The missing piece is perhaps home accessories,” he said.
Welspun is present in over 600 cities and 20,282 multi-brand outlets. Brand Spaces is present in 32 Exclusive Brand Outlets (EBOs) and plans to reach 150 EBOs by FY27.
Within a year, the company will launch Christy in India. Christy is the company’s most exclusive brand and sells towels, bed sheets, bathrobes, duvets, etc.
“We’re catering to different levels of consumers who are evolving,” she said. Christy’s will be sold through multi-brand luxury home decor stores. Globally, it also has a portfolio of licensed brands, including Martha Stewart and Scott Living, and private labels, including the 170-year-old Christy’s brand.
Goenka said the company is well positioned to meet domestic demand through its existing factories. To this end, Welspun is working on a strategy to reduce bottlenecks across its facilities, he said.
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