For the third quarter home textile firm Welspun India saw a 47.07 per cent decline in consolidated net profit. Total income in the quarter fell 7.06 per cent compared to the same period last year. The fall in income is attributed to the decline on account of volume decline due to customer destocking coupled with goods and service tax impact on duty drawback.
Welspun has been taking steps to be prepared for the future in terms of its brands, channels, innovation, traceability solutions, sustainability solutions and many other areas. Welspun is a Mumbai-based terry towel producer. It is looking at helping cotton farmers grow better quality cotton and also encourage them try organic cotton. Welspun is guiding and mentoring farmers on right practices, right seed and right pesticides. Cotton farmers are being mentored on the kind of crops to grow after cotton harvest so as to help them improve the overall soil nutrients like nitrogen. The company is looking to cover at least a fifth of farmers supplying cotton to it by 2021.
Welspun India targets doubling revenue by 2022. The US continues to be a key market for Welspun. Currently the US contributes around 65 per cent to its business, with 25 per cent to 30 per cent coming in from the rest of the world, and five per cent from India.