Welspun India despins completely amidst allegations

Welspun India has certainly been the dwindling scrip of Aug 22 trade. Welspun the Asia’s largest and second largest Terry Towel producer in the world, has found itself on the other side of the table with the stock hitting the lower circuit. Shares of the company which previously closed at Rs 102.85 on Aug 19, have opened at 82.30, on Aug 22, down by 20 per cent. Target Corp, one of the world's biggest textile manufacturers has ended all the ties with Welspun. According to Target Corp, Welspun was supplying phony Egyptian cotton sheets. It discovered in July that some 750000 sheets and pillow cases have been mislabelled as Egyptian cotton. Target Corp has pulled the items sold under Fieldcrest label from its stores and has offered customers refund on the products, which were made between August 2014 and July 2016 to its customers.

 According to Bloomberg Data, Target is the second biggest customer, after Bed Bath & Beyond Inc. Company also manufactures towels for the Wimbledon Tennis Championship and the Rugby World Cup.On the other hand, Welspun India has informed bourses that it is in the process of appointing an external auditor to audit their supply system and processes.

Welspun India Ltd., is an India based company engaged in the business of manufacturing of home textiles. Company is primarily into two products namely Bed & Bath in home textiles.