Confirming that Welspun supplies a number of products to Walmart, a spokesperson of the US retail major said: "We are currently reviewing Welspun cotton certification records and plan to have additional conversations with Welspun. If we discover an issue, we will handle it appropriately."
The development follows Target Corp, which had after an extensive investigation, confirmed that Welspun that uses Egyptian cotton to make bedsheets and pillowcases sold by the retailer, substituted another type of non-Egyptian cotton when producing these sheets between August 2014 and July 2016.
"We have informed Welspun that, due to this conduct, we are in the process of terminating our relationship with them," Target Corp said.
Welspun on its part had said it has initiated immediate actions to investigate the root cause and was appointing an external auditor to audit its supply systems and processes.
Shares of Welspun India were trading at Rs 59.30 on BSE post afternoon, down 9.95 per cent from previous close.
The shares had crashed 19.99 per cent yesterday to Rs 65.85 - its lower circuit limit - on BSE.
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