Welspun Group eyes $5 bn revenue by 2020: Goenka

Mumbai: Welspun Group plans to increase its revenue to USD 5 billion by 2020 from the present USD 3 billion, with its flagship textile business contributing half of its income.

The Balkrishan Goenka-led conglomerate has interests in home textiles, oil & gas, pipes and green energy.

It posted a revenue of USD 3 billion in the year ending March 2015, one-third of which came from the home textile business driven by Welspun India. The long line-pipe business under Welspun Corp contributed USD 1.5 billion.

"Under our Vision 2020, we have set a target of clocking USD 5 billion in revenue for the group from the present USD 3 billion. The idea is to get half of this from our home textiles business that currently chips in with one-third," Goenka told PTI in Little Rock during a recent visit to its plant in the capital of US state of Arkansas.

"I expect Welspun Corp, that runs our long line-pipe business, to contribute USD 2 billion, up from the present USD 1.5 billion, to the total revenue, and the rest USD 500 million to come from our other businesses, including infrastructure and energy," he said.

Currently, the solar power business revenue is around USD 200 million, he added.

Welspun India is the single largest organised supplier of home textiles in the USD 17-billion US market, enjoying over 8 percent market share.

Welspun Corp has its largest plant in Anjar with a capacity of nearly 1.5 million tonne and a 0.35 million tonne manufacturing facility at Little Rock, Arkansas in US, which also happens to be the largest employer in the manufacturing sector in the city, employing 900 people.

According to Skip Herald, President and Chief Executive, Welspun Corp USA, the company enjoys 25 percent market share in the large diameter pipes in the US market.

Apart from the US, it also has pipe mills in Gujarat.

On the solar energy business under Welspun Projects, Goenka said the group will have an installed capacity of 1,300 MW by June next and 2,000 MW by March 2017.

At present, its installed capacity is nearly 450 MW spread across Gujarat, Rajasthan, MP and Andhra, making it the largest independent solar power producer in the country.

The company, which also has plans to enter wind, hydel and biomass sector, has roped in ADB and the American giant GE as partners in the power venture.

The company has already invested Rs 3,000 crore into the energy business, including Rs 500 crore of equity.