BKG, as he is fondly known, pioneered the $2.3-billion Welspun Group, which has interests in home textiles, steel pipes and renewable energy among others, in 1985. Under his astute leadership, Welspun has grown exponentially and now plans on achieving $5 billion in revenue in the next five years.
Inspired by his father late Gopi Ram Goenka, known for his sharp business acumen, BKG began his journey at the age of 19. After briefly trying his hand at brass exports in London, he returned to India and set up base in Mumbai. Armed with a seed funding of Rs 20 lakh, given to him by his father, and non-fund-based payment guarantees from Canara Bank worth Rs 80 lakh, Goenka set up a small textile unit in Palghar, Maharashtra. That was the beginning of Welspun India, which went public in 1991.
Today, the company is the world’s second largest large-diameter-pipe company; and is the world’s leading home textile manufacturer and supplier.
Welspun Group has state-of-the-art manufacturing facilities in India, Saudi Arabia and the US. Across its key markets, the company has demonstrated a focus on innovation, engagement and building trust among its customers. It currently employs more than 26,000 people and has presence in more than 50 countries. The company is the single largest organised supplier of home textiles in the $17-billion US market, enjoying over 8 per cent market share.
BKG, who describes himself as “a simple merchant on a global scale”, is known to be passionate about business with a strong legacy to build successful companies.
The company posted 3.9 per cent year-on-year increase in Q3 revenue to Rs 1,500.9 crore, while profit was down 16.2 per cent at Rs 149.4 crore.
Last year in August, the company lost over Rs 2,000 crore in market capitalisation, after one of its largest customers, Target Corp., announced termination of its business relationship with Welspun over cheaper bedsheets being passed off as premium Egyptian cotton. Target said in a statement that the Indian manufacturer substituted Egyptian cotton with a cheaper variant of cotton while supplying bed sheets. This led to Walmart Stores Inc. reviewing its supplier Welspun’s cotton certification records.
“What we lost is roughly 10 per cent and particularly Egyptian was 6 per cent, but if you see, our growth has been around 15 per cent and our guidance for the current year and the coming years is around mid 15 and 17 per cent growth. So while next year may not be a double digit growth, I think we will still have a positive growth,” said Goenka recently.
Early this year, Welspun entered into a co-operation agreement with Cotton Egypt Association (CEA) to promote and market Egyptian cotton products worldwide.
Welspun India has recorded a net profit of Rs 150.24 crore in the third quarter FY16, a 17.27 per cent decline, compared to Rs 181.61 crore in the corresponding period last year.The company earned a revenue of Rs 15,009 million in the third quarter of this fiscal, recording a 3.9 per cent year-on-year growth compared to last year’s revenue of Rs 14,451 million.
