Textile maker Welspun India announced on 9
th Feb 2017 that it has entered into a strategic agreement with the Cotton Egypt Association (CEA).
This allows it to market its Egyptian cotton products with the CEA’s logo for the next five years until 2022.
CEA is a non-profit body set up in 2005 by Egypt’s ministry of industry and foreign trade set up to certify Egyptian cotton products made by textile manufacturers worldwide and ensure they maintain sourcing and supply quality.
CEA has allowed us to use the logo.
Welspun India announced it will spend $3 million in the next five years for marketing and promoting its Egyptian cotton products with the new logo.
The company said it is also exploring setting up a manufacturing facility in Egypt.
American retail chain Target Corp. terminated its contract with Welspun India in August 2016, accusing Welspun of passing off ordinary cotton products as Egyptian cotton.
This is considered higher quality and is more expensive.
Target was Welspun’s largest client, bringing in $90 million in sales last financial year.
Profits declined and Welspun faces class action lawsuits for violating American consumer laws, two of which were filed in September 2016.
Welspun’s business is largely export-oriented and it sells in 50 countries, including the US, Europe and the UK.
