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The Textile Magazine
MAY 2012
share of WIL. Second, marketing
business of WGBL will be hived
off from WIL via slump sale to its
subsidiary, Welspun Retail Ltd.
(WRL), which is currently a sub-
sidiary of WGBL. In consideration,
WRL will issue new preference
shares to WIL. Finally, Welspun
Retail will be renamed as Wel-
spun Global Brands Ltd. to retain
its marketing identity. This will
bring the entire manufacturing and
marketing business under a single
company.
With the challenging global busi-
ness environment, this restructuring
will enable the textiles business to
provide superior delivery to cus-
tomers and an opportunity to grow
its market share. The recent difficult
international business environment
has impacted the international mar-
keting operations and weak con-
sumer sentiments have particularly
affected the demand and
retail operations. Domes-
tic and International retail
markets slowed down due
to tough economic condi-
tions, and many high-cost
manufacturing locations
witnessed closure of units.
Marketing and retail busi-
ness witnessed high cost
and low margins, resulting
in losses across geogra-
phies.
Marketing set-up under
WIL, WRL, WGBL in the
US, the UK, Portugal and
Mexico, incurred losses and
both the companies have
provided for losses to the
tune of Rs. 1,701 million
during this year. Post this
restructuring, the domestic and
international operations have been
pruned to enable WIL to grow
profitably.
Speaking on the occasion, Mr.
Rajesh Mandawewala, Managing
Director, Welspun India Ltd., said:
“After a sluggish start, the textile
industry in India is showing an
upward trend, and we being one of
the leading home textiles players in
the world have done exceptionally
well. During FY 2011-12, we took
various steps to consolidate our
manufacturing operations and are
merging WGBL into WIL to ensure
that we can provide superior quality
product and services seamlessly to
our customers. Focus on innova-
tion shall continue to provide us an
edge to be preferred partner to our
customers and thereby continue to
grow our market share.”
w
Maharashtra CM’s
optimism over new
textile policy
The Maharashtra Chief Minister,
Mr. Prithviraj Chavan, has said that
the new textile policy, which aims to
get Rs. 40,000-crore investment in the
next five years will boost the sector in
a big way.
Speaking after inaugurating a web-
site of the new policy, Mr. Chavan
said 80 per cent of the cotton produced
in Maharashtra is taken to the neigh-
bouring States for processing.
“The new textile policy aims to im-
prove the situation by providing incen-
tives to the textile units in Vidarbha,
Marathwada and North Maharashtra,
so that employment opportunities are
improved,” he added.
The investors will be provided unin-
terrupted water and electricity supply
and other incentives, he said adding
that the policy will see employment
opportunities to 11 lakh people.
The State Textiles Minister, Mr.
Mohammed Arif Naseem Khan, said
the new website would provide all in-
formation to investors about the policy
and major Government decisions.
w
corporate news
Mr. R.R. Mandawewala, Managing Director