Welspun's bed linen revenue targeted at Rs2.5bn in 2007
14 Sep '06
1 min read
Textile firm Welspun India Ltd has upped its bed linen revenue target at Rs 2.5 billion for 2006/07 from the current Rs250 million, thanks to its expansion drive and future contract cotton farming project to offset price fluctuations.
Besides, profits from Christy, a UK-based home textile chain Welspun bought in July would also add to its kitty for 2007/08.
The company's retail unit equally owned by Welspun India and its founders , would add 50,000 sq. ft. of space by March 2007 to the existing 150,000 sq. ft.
With this retail space expansion for selling branded home furnishing, the turnover is expected to touch Rs500-600 million mark.
In September 2005, Welspun expanded its terry towel capacity by 10,000 tons and bedsheet capacity by 30 million metres per year to benefit from the Textile Upgradation Fund Scheme(TUFS).
Capacity expansion cost at Rs6.5 billion shrank Welspun's profits in the past quarters and the company would now go for contract cotton farming on 1,200 hectares in eastern Orissa to negate price fluctuations of its key raw material.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
