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Welspun World

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Welspun World
Company typeCorporate group
IndustryConglomerate
Founded1985; 39 years ago (1985) in Mumbai, India
FounderB. K. Goenka
Rajesh R. Mandawewala
HeadquartersMumbai, Maharashtra, India
Area served
Worldwide
Key people
B. K. Goenka (Chairman and Managing Director)
ProductsInfrastructure, gas, oil, energy, steel, textile, pipe, retailing
RevenueIncrease US$3 billion (2011)

Welspun World (formally known as Welspun Group) is an Indian multinational conglomerate with business interests in line pipes, textile, infrastructure, and steel.[1] It is headquartered in Mumbai.[2]

History

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In 1985, Balkrishan Goenka, along with his cousin Rajesh R Mandawewala, founded Welspun with an initial investment of $100,000 borrowed from his father.[3] The company began its operations as a small texturizing unit under the name Welspun Winilon Silk Mills in the Palghar district.[4] It was promoted by the G.R.G. group, headed by Gopi Ram Goenka, who is the father of Balkrishan.[5][6][3]

Between 1986 and 1989, the company established two yarn texturizing factories.[7] One, situated in Palghar, produced 797.5 MT of yarn annually. The second factory, with a similar capacity, was set up in Silvassa. In 1990, the company expanded its operations by establishing a polyester filament flat yarn manufacturing unit in Thane, with a capacity of 605 MT per annum. The company's name was later changed to Welspun Polyester India Limited.[7]

In 1991, Welspun Polyester India went public through its initial public offering (IPO) and later rebranded as Welspun India Limited (WIL).[8] The company expanded into the terry towels business by setting up its first terry towel plant in Vapi, Gujarat, with 15,000 cotton spindles.[9][10] Welspun also proposed a POY project in Silvassa, Dadra, and Nagar Haveli, with a capacity of 15,000 metric tonnes per annum (MTPA). Between 1994 and 1995, the company increased its terry towel production capacity from 3100 MTPA to 5200 MTPA. Additionally, it started developing power plants capable of generating 40 M.W., intended to support spinning machines for terry towels and cotton through captive power sources. Welspun also acquired a plant from Rieter Automatic Gmbh in Germany to launch its polyester filament yarn project.[11] In 1996, Welspun's polyester yarn business was leased to a group company to shift focus to natural fibers.[9] In 1999, Welspun entered a joint venture with Vincenzo Zucchi SPA, Italy, for Terry Bathrobes and Terry made-ups production at its Vapi, Gujarat plant.[12] In 2000, Welspun USA was formed as a wholly-owned subsidiary of Welspun India Limited.[13]

In 2001, Welspun hived off its cotton yarn unit into a separate company, which became known as Welspun Cotton Yarn Ltd.[14][15] CRISIL, an analytical company in India, subsequently downgraded the company's NCDs from a "B" rating to a "D" rating. In 2004, Welspun India received Walmart's Supplier of the Year for Bed & Bath.[16] In 2009, Welspun appointed B K Goenka as the Chairman and Managing Director.[17] In 2013, Welspun Corp. Ltd., a subsidiary of Welspun Group, divested its entire 39.88 percent stake in Leighton Welspun India for USD 99 million.[18]

In 2015 and 2016, Welspun was granted the contract for Package I development of Delhi–Meerut Expressway, covering 8.7 km in Delhi, with a total estimated project cost of ₹841.50 crore (US$110 million).[19][20] The expressway segment was officially inaugurated on May 27, 2018, by Prime Minister Narendra Modi.[21] During the same period, Welspun initiated a 32 MW solar power plant,[22] launched an online retail portal,[23] and expanded into flooring solutions with a ₹600 crore carpet plant in Anjar, Gujarat.[24] The group also closed one of its plants in Mexico.[25]

In December 2019, the group entered the warehousing sector through the acquisition of majority stakes in One Industrial Spaces.[26] In 2020, Welspun Flooring Ltd, a subsidiary of Welspun Group, established a manufacturing facility in Hyderabad with an annual capacity of 40 million square meters.[27] In February 2023, the Welspun Group launched a textile facility in Telangana, inaugurated by IT and Industries Minister KT Rama Rao. During the event, the group disclosed its intentions to establish IT centers in Chandanvelly, Ranga Reddy district in Telangana.[28] Also, the Welspun Group announced a Rs 2,000 crore investment for the development of an integrated textile manufacturing zone in Kutch, Gujarat, in alignment with the Indian government's Sagar Mala project. This initiative was aimed at facilitating the global manufacturing and supply of textile products.[29]

In March 2023, the group expanded its presence in the building materials sector by acquiring Sintex BAPL, a water tank manufacturer, for Rs 1,251 crore through its subsidiary, Welspun Corporation.[30] During FY19, Sintex had reported an operating profit of Rs 270 crore on a turnover of Rs 1,800 crore. However, the company faced financial difficulties and was taken to the bankruptcy court in December 2020 due to default on loan repayments.[31] In February 2023, The National Company Law Tribunal (NCLT) admitted the insolvency plea against Sintex, but it was later dismissed by NCLAT.[32] In July 2023, the group re-branded itself as Welspun World.[33]

Awards

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References

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  1. ^ "Welspun's BK Goenka: Spinning Solutions". Forbes India. Retrieved 12 June 2024.
  2. ^ Mandavia, Megha; Kalesh, Baiju (16 December 2015). "Succession Planning: Welspun Group to hive off yarn-spinning business for next generation". The Economic Times. ISSN 0013-0389. Retrieved 12 June 2024.
  3. ^ a b "I had no background in any of the businesses I got into". The Times of India. 25 February 2012. ISSN 0971-8257. Retrieved 12 June 2024.
  4. ^ "Retail India News: Welspun Living Joins Bharat Tex 2024 to Champion India's Textile Legacy". Indian Retailer. Retrieved 12 June 2024.
  5. ^ "Welspun's BK Goenka: Spinning Solutions". Forbes India. Retrieved 12 June 2024.
  6. ^ "About Balkrishan Goenka". www.business-standard.com. Retrieved 12 June 2024.
  7. ^ a b "From Vapi to Wimbledon". Outlook magazine. Retrieved 12 June 2024.
  8. ^ "Welspun's BK Goenka: Spinning Solutions". Forbes India. Retrieved 12 June 2024.
  9. ^ a b "From Vapi to Wimbledon". Outlook magazine. Retrieved 12 June 2024.
  10. ^ "I had no background in any of the businesses I got into". The Times of India. 25 February 2012. ISSN 0971-8257. Retrieved 12 June 2024.
  11. ^ "Welspun India". Money Control. Retrieved 12 June 2024.
  12. ^ "As Welspun awaits Wal-Mart review, investors brace for worst". Retrieved 12 June 2024.
  13. ^ Correspondent, Special (3 July 2019). "Welspun gets U.S. court nod to settle claims". The Hindu. ISSN 0971-751X. Retrieved 12 June 2024. {{cite news}}: |last= has generic name (help)
  14. ^ "From Vapi to Wimbledon". Outlook magazine. Retrieved 12 June 2024.
  15. ^ "High Court sanctions Welspun India's Scheme of Arrangement". m.rediff.com. Retrieved 12 June 2024.
  16. ^ textilemagazine (28 April 2016). "Welspun plans further investment for capacity expansion". The Textile Magazine. Retrieved 12 June 2024.
  17. ^ www.ETBrandEquity.com. "Welspun's chief B K Goenka to give up operational role - ET BrandEquity". ETBrandEquity.com. Retrieved 12 June 2024.
  18. ^ "Welspun exits JV with Leighton". The Hindu. 30 December 2013. ISSN 0971-751X. Retrieved 12 June 2024.
  19. ^ "Welspun signs concession agreement with NHAI". Projects Today. Retrieved 12 June 2024.
  20. ^ "Welspun Enterprises provides update on Delhi Meerut Expressway project". www.business-standard.com. Retrieved 12 June 2024.
  21. ^ "Highlights: PM Modi Inaugurates Eastern Peripheral, Delhi-Meerut Expressways". NDTV.com. Retrieved 12 June 2024.
  22. ^ "State's largest solar plant starts producing power". The Times of India. 9 October 2015. ISSN 0971-8257. Retrieved 12 June 2024.
  23. ^ "Welspun India launches online retail portal". BusinessLine. 15 October 2015. Retrieved 12 June 2024.
  24. ^ "Welspun to set up Rs 600cr flooring solutions plant in Gujarat". India Today. 14 December 2016. Retrieved 12 June 2024.
  25. ^ "Welspun Group works its way back to basics". Live Mint. Retrieved 12 June 2024.
  26. ^ "Welspun Group picks up majority stake in One Industrial Spaces". VCCircle. Retrieved 12 June 2024.
  27. ^ "Welspun launches Rs 1,100 crore manufacturing facility in Telangana". www.business-standard.com. Retrieved 12 June 2024.
  28. ^ "Welspun Group to invest ₹3,000-5,000 cr. more in Telangana". The Hindu. 22 February 2023. ISSN 0971-751X. Retrieved 12 June 2024.
  29. ^ "Welspun Group To Invest Rs4,000 Crore In Gujarat". Forbes India. Retrieved 12 June 2024.
  30. ^ Bureau, BL Mumbai (30 March 2023). "Welspun completes Sintex-BAPL acquisition for ₹1,251 cr". BusinessLine. Retrieved 12 June 2024. {{cite web}}: |last= has generic name (help)
  31. ^ "Welspun buys water tank co Sintex for ₹1,251cr via bankruptcy process". The Times of India. 31 March 2023. ISSN 0971-8257. Retrieved 12 June 2024.
  32. ^ "NCLAT directs NCLT Ahmedabad to decide on insolvency plea against Sintex Industries within a week". The Economic Times. 15 March 2021. ISSN 0013-0389. Retrieved 12 June 2024.
  33. ^ www.ETBrandEquity.com. "Welspun rebrands itself as Welspun World - ET BrandEquity". ETBrandEquity.com. Retrieved 12 June 2024.
  34. ^ "Golden Peacock Eco-Innovation Award (GPEIA) - Winners". www.goldenpeacockaward.com. Retrieved 12 June 2024.
  35. ^ "Welspun India felicitated with the prestigious National Water Award 2020". www.indiainfoline.com. Retrieved 12 June 2024.
  36. ^ "Raymond Vapi Plant Awarded For Energy Conservation Measures". textile Excellence. Retrieved 12 June 2024.
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