Welspun Living has reported its highest ever yearly revenue of Rs. 98,251 crore for FY24. The company has also announced two significant projects with further details recently disclosed. Currently, Welspun’s annual manufacturing capacity includes 90,000 MT of bath linen, 108 million meters of bed linen, 12 million square meters of rugs and carpets, 27,729 MT of spunlace, 3,026 MT of needle punch, and 100 million packs of wet wipes.
Jacquard Towel Plant
Welspun is expanding its Jacquard towel capacity with a new plant in Anjar, which will have an additional capacity of 6,400 MTPA at an investment of Rs. 400 crores. The plant is set to be operational by November 2024, allowing Welspun to increase market penetration in the beach and fashion towel category, as well as expand its offerings in kitchen and bath robes. The market size for beach and fashion towels in the US is USD 3 billion.
Pillow Manufacturing in the US
Welspun is also setting up a greenfield project for pillow manufacturing in Ohio, USA, with an initial capacity of 6.7 million pillows. The company will invest USD 50 million in this new facility, which is expected to be operational by September 2024. Pillows are the second most sold category after bath towels in the home textile sector. In 2022, nearly 250 million units were sold, with the US market valued at approximately USD 2.8 billion, projected to grow to USD 3.6 billion by 2026. This new plant taps into nearshoring opportunities by increasing production capacity closer to the US market.
Performance Highlights
The brand ‘Welspun’ continues to strengthen its leadership position as the most widely distributed home textile brand in India, with a presence in over 600 towns and 20,282 outlets, an increase of 9,112 in FY24. The flooring business recorded its highest ever yearly revenue of Rs. 9,269 million at an EBITDA of 8.3%, reflecting a growth of 31.4% in FY24. Emerging businesses, including domestic consumer, branded, advanced textiles, and flooring, grew by 16% in FY24, contributing 33% to the total consolidated sales. The company invested Rs. 2,754 million in FY24, primarily towards the setup of a 30 MW solar power plant at the Anjar facility, which has now been commissioned.
The export business grew by 23% in FY24, recording sales of Rs. 75,329 million. Welspun Living achieved the highest score in the DJSI CSA ESG Rating 2023 in the textile category in India, standing among the top textile companies globally, with a score improvement from 59 to 66.
Ms. Dipali Goenka, Managing Director & CEO of Welspun Living Limited, commented, “It is with great pride that we share the achievement of our highest ever quarterly and yearly revenues in Q4 and FY24, with a significant growth of 19% in the quarter and 20% yearly. Our sustainable EBITDA of 15.4% for FY24 represents a 73% growth over last year. Our ROCE has improved to 14.6% from 5.7% last year. Our strive for excellence in every sphere of our activities has earned us recognition and certification as a ‘Great Place to Work’ by GPTW Certification Agency, with the company being rated among the top 100 companies in India across all parameters.
We are delighted to see our flooring business flourishing with highest yearly revenues of Rs. 927 crore, growing by 31%. All our emerging businesses, which are pillars of our future growth, continue to excel, growing 16% in FY24. Our domestic retail business has shown resilience amid subdued retail market sentiments during the year. The brand ‘Welspun’ strengthened its leadership position in the country with a presence in over 600 towns and 20,000 stores, achieving highest ever revenues in FY24. We are pleased to announce that the Dow Jones Sustainability Index (DJSI) ESG rating for 2023-24 placed WLL among the top 3 percentile of home textile companies globally with a score of 66, reiterating our leadership in sustainable practices and corporate governance.”
