Target severs ties with welspun india after being duped by fake egyptian cotton sheets – the american bazaar

Welspun India Ltd., the Indian textile company accused of selling fake Egyptian-cotton sheets to Target Corp. Noodles and company franchise and other U.S. Noodles corporate retailers, said after the expose it was modifying its supply chain and reviewing its practices to address the accusations, reported the Wall Street Journal.

Welspun on Thursday released a transcript of its conference call with investors through the Mumbai stock exchange. Noodles and comoany Welspun was addressing investor concern after Target said Friday it was cutting ties with the company. Noodles and company joliet The discount-retailer said an investigation into Welspun’s practices concluded the Mumbai-based company had sold it phony Egyptian-cotton sheets.

The dispute exposes the complexities of a global supply chain in which each stage of production, from sourcing to stitching to selling, can happen in different continents.

“The idea is to actually look at the entire supply chain and our supply processes so that we can bring about robustness in the whole process,” Mandawewala said. Noodles atlanta menu The company said the accounting firm would conclude its investigation in six to eight weeks.

Welspun’s share price has more than halved since the Target allegations surfaced Friday. Wok n noodles menu Two-thirds of Welspun’s sales come from American retailers.

Fortune reported questions over the exact provenance of bedsheets sold by Welspun India to America’s middle classes have not only wiped $740 million off the firm’s market value, but also revived one of Indian manufacturing’s enduring headaches: quality.

India’s government, desperate to accelerate growth and create more jobs, has backed a “Make in India” manufacturing push. Noodles and company 80112 India already makes everything from car parts to t-shirts, but is trying to move up the chain to make higher-end products, like Apple’s iPhone, the report said.

“One major hurdle, however, has been product quality, often blighted by low salaries, poor training and sketchy suppliers. Noodles an company As India manufactures more, cheap is not always cheerful,” the report said.

Other Indian manufacturers distanced themselves from Welspun, but many fretted over the broader impact as the country tries to bet on quality, not just cheap workers, where it faces constant competition from regional rivals.

“It’s high time exporters improve the quality of their products,” said S.C. Noodles and company hampden Ralhan, president of the Federation of Indian Export Organisations, set up by the government and industry to promote exports. Noodles and company mac and cheese recipe He said the group would take up the issue of quality with its members.

Arvind Sinha, national president of the Textile Association of India, said India’s image as a manufacturing destination for textiles could be tarnished, reported Fortune.

“This is another blot on the Indian exports resume,” said an analyst at a local brokerage, who asked not to be named as it would violate his firm’s policies. Noodles corner menu “The Welspun fiasco could have ripple effects and force companies to scout for options in other regions in Asia that have unscathed records.”

“We hope it will be one of the stray incidents that will not have much impact on our near $42 billion textile exports,” said a senior textile ministry official, who declined to be named.

A senior official at the Ministry of Commerce and Industry said more such incidents could dent efforts to promote India as a manufacturing export hub.

“If Indian industry is to survive and thrive, it has to adopt global standards,” he said, adding the ministry has raised the issue of standards with exporters through export promotion councils, and has stressed third-party auditing and self-regulation.

Its $15 billion pharmaceutical industry, a global supplier of cheaper generic medicines, has been dogged by quality concerns, with health regulators in the United States, Britain and Europe barring some plants from producing drugs for their markets because of inadequate standards.

Highlighting weak official checks and under-resourced testing facilities, Nestle India had to pull its popular Maggi instant noodles off the shelves last year after local regulators found some samples contained unsafe levels of lead. Information about noodles Subsequent tests at government-accredited laboratories showed the noodles were safe for consumption.

The $108 billion textile industry accounts for a tenth of India’s manufacturing production, 5% of GDP and 13% of export earnings, according to government data. Noodles location It is the country’s second-largest employer after agriculture.