Companies

Welspun to invest ₹20 cr in Egyptian cotton promotion

Virendra Pandit Ahmedabad | Updated on January 12, 2018 Published on February 09, 2017

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Welspun India, which was mired in a controversy for faking products made of Egyptian cotton, plans to invest $3 million (₹20 crore) in promoting Egyptian cotton jointly with the Cotton Egypt Association.

Last August, the US retail giant Target Corporation terminated contract with Welspun after alleged lapses in its products supply.

Walmart also stopped selling Welspun Egyptian cotton products. Later, the company appointed consultancy firm Ernst & Young to look into the alleged lapses and implemented changes in its supply chain management.

The company had made a provision of ₹501 crore in the September quarter to resolve the controversy surrounding Egyptian cotton.

Post verifying Welspun’s quality and supply chain reliability processes, the Cotton Egypt Association has allowed the company to use the Egyptian cotton logo for five years until 2022.

In an agreement signed with the Association on Thursday, the company has agreed to enhance the complete supply chain of the Egyptian cotton starting from cultivation to the final product, which will also benefit the Egyptian farmer and the industry.

The two organisations will also create programmes for promotion of Egyptian cotton logo in the retail markets across the globe.

Dipali Goenka, CEO and Joint Managing Director, Welspun India, said the sheer nature of Egyptian cotton makes it a luxury to be cherished by all and Welspun will help create marketing programmes and execute them using its extensive global network.

The company is also exploring options for expansion of its Egypt operations to include a manufacturing facility for Egyptian cotton home textile products.

“We foresee an increase in demand for Egyptian cotton and find an ideal condition for making Egypt one of our hubs for sourcing and manufacturing Egyptian cotton products. We’re looking at the best option to utilise this opportunity,” she added.

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Published on February 09, 2017
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