Welspun Group chairman BK Goenka
Image: Mexy Xavier
Welspun Group, the $2.3 billion business group that is present across business such as textiles, steel pipes and infrastructure, will invest Rs4,000 crore towards new and existing textile projects in Gujarat. This was announced by Welspun Group chairman BK Goenka on Wednesday during the ongoing Vibrant Gujarat Summit 2017 at Gandhinagar.
The Welspun Group, which is known for supplying towels used for global sporting events like the Wimbledon, will invest Rs2,000 crore in developing an integrated textile manufacturing zone that will “manufacture and supply world-class textile products for the global markets.” The project will be set up in Kutch, Gujarat, and will be a part of the Indian government’s Sagarmala Project.
“The Kutch facility will provide a unique ecosystem for entrepreneurs to set up manufacturing facilities,” a statement issued by Welspun on Wednesday said. “The project will generate direct employment of nearly 5,000 and will provide indirect employment to nearly 15,000 people.”
The company will be spending another Rs1,000 crore in its technical textile business for capacity enhancement and addition of new products. This division makes textiles that are used in healthcare, fire departments and other utilities. The remaining funds will be invested in Welspun’s advanced textiles arm that makes specialsed materials for applications in aerospace, defence and automobile sectors.
In its statement issued Wednesday, Welspun said that it has already invested Rs10,000 crore in Gujarat, including for its flagship manufacturing site in Anjar, which employs more than 30,000 people directly.
Welspun was recently in the eye of a controversy for having allegedly supplied bedsheets to global retailers like Target Corp., that were said to be made of Egyptian cotton but actually weren’t. This led to Target terminating all business ties with Welspun and impacted the company’s credibility.
Welspun India’s share price rose 1.15 percent on the BSE at 2:36 pm to Rs69.55 per share. The bourse’s benchmark index, S&P BSE Sensex rose 0.92 percent to 27,146.84 points.