BENGALURU: Home textiles major Welspun India today announced foray into e-commerce space with its new online retail store Shopwelspun.in, and targets a revenue of U.S.$ 50 million by 2020. "Shopwelspun.in is set to be a one-stop shop for home furnishings, and we are targeting U.S.$ 50 million in online sales revenue," Dipali Goenka, CEO and Executive Director of Welspun India, told reporters.
The company expects 5 percent of its sales to come through the online channel this fiscal, and in the next 3 to 5 years, it expects 10-12 percent of its sale to come from the online store. Welspun India presently sees about 3-4 percent of its sales coming from leading marketplaces.
The company is investing significantly in enhancing its technology, including digital marketing and online merchandising, content and customer experience as part of this exercise, she added. While the company is looking at e-commerce segment, it will be one of the ways of distribution in its shift towards becoming omni-channel, Goenka said.
She did not disclose the investment details of the initiative, but indicated that they would take a "calibrated approach" towards e-commerce. The company currently has over 200 shop-in-shops and about 300 distributors in offline retail and is growing at about 30 percent annually. The firm is targeting sales of about Rs 160 crore for its retail business this fiscal, she said.
Welspun is also looking at a global footprint for its e-commerce initiative and will launch online retail stores in both the U.S. and the UK over the next few months, she added. "We are spending U.S.$ 5 million in the U.S. market alone, to build our brands there," Goenka said.
Welspun India stock price
On October 16, 2015, at 15:20 hrs Welspun India was quoting at Rs 725.05, down Rs 39.25, or 5.14 percent. The 52-week high of the share was Rs 963.10 and the 52-week low was Rs 294.50. The company's trailing 12-month (TTM) EPS was at Rs 57.97 per share as per the quarter ended June 2015. The stock's price-to-earnings (P/E) ratio was 12.51. The latest book value of the company is Rs 142.59 per share. At current value, the price-to-book value of the company is 5.08.
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