20 February 2023, Mumbai
Welspun opened 1000 stores in the last quarter.
This has enhanced its store count to over 10,600. The target is to reach 50,000 stores by fiscal year 2026. The company plans to deepen its reach in the domestic market by tapping smaller cities through the franchise model. The company is managing retail through MDUs with a strong sales team which visits stores and tracks sales at MDUs using the latest technology. Welspun expects exports to bounce back by the end of the next fiscal after being hit by global recession in the last few months. The retailer had raised prices due to the high incidental cost and this led to a drop in demand but retail prices have started falling with easing raw material prices and logistics costs. The brand’s licencing pact with Walt Disney for Europe, the Middle East and Africa will add another portfolio besides providing extra shelf space at top retail outlets. The company’s margin was impacted by rising cotton, coal and container costs. However, cotton and container prices have started falling while coal prices continue to remain at elevated levels. The company plans fresh capex of Rs 200 crores in renewable energy to bring down costs besides another Rs 150 crores on maintenance capex.
