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Textile exporter Welspun India has appointed consultancy major EY to review its supply-chain systems and process.
The move follows US-based retailer Target Corporation’s decision earlier this week to sever all ties with the company after a supply dispute.
A two-year-long probe by Target had revealed that bedsheets and pillow cases supplied by Welspun between August 2014 and July 2016 were not made from Egyptian cotton as promised.
Meanwhile, shares of the company have dipped 42 per cent in last four days. It fell to ₹50 on Friday after hitting a new 52-week low of ₹49.40 on Friday. Shares were trading at ₹103 on Monday.
Investors have lost ₹5,341 crore in value as the market capitalisation of the company plunged to ₹4,993 crore on Friday from ₹10,334 crore on August 19.
Trident shares zoom Meanwhile, shares of rival supplier Trident jumped nearly 17 per cent after reports emerged of Target Corp shifting some Welspun orders to the Punjab-based company. However, it did not sustain the gains and closed at ₹56.45, still up 13 per cent over the previous day’s close.
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