Welspun India aims Rs 730 cr turnover from e-commerce by FY23
According to Dipali Goenka, Joint Managing Director and CEO, Welspun India, the company is investing close to Rs 70-100 crore over a two-three year period towards the launch of its brands and putting in place of an e-commerce network including the back-end and front-end and up-skilling of its workers.
A part of the proposed investments has already been done. Across global warehouses, digitisation of services and technical ramp-up has taken place. Globally, marketplaces like Amazon are being tapped.
Goenka told the media that e-commerce would have a $100 million contribution to our business by 2023. And this is going to come from our brands like Welspun here in India, acquired ones like United Kingdom's Christy, which made towels for the Queen of England, or US-based brands like Martha and Scott Living.
She said that the new way is noticeable to the company and is relevant to our emerging businesses, and e-commerce would have a quite big contribution. The e-commerce model is very scalable in the UK and the US.
The emerging business verticals that the company has been investing in here over the last few quarters. With nearly Rs 300 crore investments being further made in floorings, the company is anticipating the benefits of these verticals to increase in Q4 FY22 onwards.
Owned and licensed brands, and emerging businesses of advanced flooring and textile, have posted an 87% increase year-over-year (YoY) and have a revenue contribution of 15% to the revenues of Welspun India.
In FY21, Welspun India reported a turnover of about Rs 7,408 crore at an 8.4% YoY increase, seeing at Rs 600 crore capital expenditure (capex) this financial year across its three business verticals. This is over and beyond the investments made towards e-commerce play.
Welspun India is eyeing Rs 12,500 crore turnover by FY25, she said.
Also read: Welspun logistics subsidiary to invest Rs 2,000 cr in warehousing