Welspun to open 20 exclusive retail outlets in a year

Welspun India Ltd, flagship of the Rs 2,000-crore Welspun Group would make a foray into retailing with opening of its first concept store in Mumbai in February. The company has also decided to enter into a new business of cotton farming.

Welspun would start commercial production from Anjar plant in April, said a senior official of the company. The new towel and sheeting facility at Anjar in Kutch district, is expected to cater to the increased demand from the exports markets.

"We are planning to invest heavily in opening exclusive 'Spaces' stores across the country. Welspun would directly run the stores. We are aiming at opening of 20 such concept stores during next one year," said B K Goenka, vice chairman and managing director of Welspun Group.

The stores would be owned and run by Welspun domestic retail division and would function as independent profit centres. Anshuman Singh, CEO, would head the retail division in the domestic market.

"We are also entering into the cotton farming business which would be done under typical contract farming model and we have already discussed the new business model with state government as for such activity, a policy should be there describing rules and regulations for contract cotton farming.

"Senior state government officials have already indicated to us that soon there would be a policy ready for cotton farming in contractual method and once we get the policy on hand, work would be initiated in this front," Goenka told Business Standard, on the sidelights of Global Investors' Summit.

Welspun would hire technological know-how from Israel for contract farming, a popular idea in that country while Goenka said that the Company has already initiated search for land, fit for contract farming in Gujarat.

Welspun already has a yarn unit under the banner of Glofame Cotspin Industries Limited which has its yarn process plant at Vapi in Gujarat and with its entry into cotton growing business, the Company would be considered as an integrated textile entity.

Divulging the company's retail plans, Singh, the new CEO of Welspun (Domestic Division), said, "The Indian home furnishing market is lying neglected as there is so far no word called 'fashion' in the country's home furnishing sector which has been emerging fast with people's purchase power increasing day by day. The retail outlets would be initially setup in metro cities following which we would open stores in the B and C category cities while print and electronic media campaign would be unfolded soon to back our retail initiative."