Welspun Signs Deal With Cotton Egypt Association To Promote Egyptian Cotton

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Welspun Signs Deal With Cotton Egypt Association To Promote Egyptian Cotton

Welspun India Ltd (WIL) has entered into a co-operation agreement with Cotton Egypt Association (CEA) in order to promote as well as market Egyptian cotton products all over the world, the company has officially announced.

As per the deal, Welspun will invest US$ 3 million in a phased manner over the next five years in order to support the joint initiative. The two organisations will work together to promote the logo of Egyptian Cotton in retail markets across the world.

The agreement will also help enhance the complete supply chain of the Egyptian cotton starting from cultivation to the final product, which will also benefit the Egyptian farmer and the industry as a whole.

Incidentally, the move comes after a controversy surrounding Welspun, according to which the company had allegedly passed off cheaper quality cotton as “Egyptian cotton” to its western clients, which earned it disrepute.

Aftert verifying Welspun’s quality and supply chain reliability processes, the Cotton Egypt Association has granted the company the right to use the Egyptian Cotton logo for five years until 2022. “Welspun had undertaken stringent audit and traceability programme to ensure the best product quality that is certifiable, verifiable and auditable,” according to the company statement.

“The sheer nature of Egyptian cotton makes it a luxury to be cherished by all. Welspun wants the world to know about Egyptian cotton and we want to help promote it among consumers and the makers alike. Welspun will help create marketing programmes and execute them using its extensive global network,” Welspun India Ltd’s CEO and Joint Managing Director Dipali Goenka said.

Welspun India is also in the process of exploring options to expand its Egyptian operations to include a manufacturing facility for Egyptian cotton home textile products. “We foresee an increase in demand for Egyptian cotton and find an ideal condition for making Egypt one of our hubs for sourcing and manufacturing Egyptian cotton products. We’re looking at the best option to utilise this opportunity,” Goenka said.