According to Welspun India, change in underlying behavior and rise of homebody economy have resulted in re-allocation of spending, which is driving the overall demand for Home textile products. Hygiene and Wellness have become integral part of existence, says the Company’s release. Consumers are still reluctant to resume their normal ‘out of home’ activities and are spending more time at home. Further, with the growth of Omni-channel, retailers have also adapted to the next normal in consumer experience and engagement.
During Q2 Welspun India has witnessed a sharp jump in volumes, and Company’s plants are running at full capacity. In Home Products portfolio; Bath Linen volume grew by 13% YoY and 51% QoQ while Bed Linen volume grew by 13% YoY and 145% QoQ.
With the customer demand continuing to be buoyant, the company is exploring further ways and means to enhance its capacity by de-bottlenecking its manufacturing processes and rebalancing the facilities. This has potential to increase present plant capacities by around 20%.
Meanwhile, the company has strengthened its brand portfolio by expanding the brand licensing partnership with Scott Living. Scott Brothers are well known designers and twin TV hosts in North America with millions of followers. Through this partnership Welspun plans to reach wider consumer base with innovative Home Textile products.
According to the company, demand for wipes has grown substantially in the developed markets, as there is an increased preference and proclivity for using aids for hygiene by individuals and for personal spaces. The company is witnessing heightened demand for its spunlace products which are running at full capacity. Hence, the company has begun the capacity enhancement projects for spunlace and wetwipes. The company is planning to invest around Rs. 300 crs in the above facilities over the next 2 years and expect to generate additional potential turnover of Rs. 400 crores at optimum capacity utilization.