Indian manufacturers distanced themselves from Welspun as it bets on quality, not just cheap workers, where it faces regional competition
Welspun has said it would hire a major accounting firm to review its supply processes
The scandal involves alleged sale of falsely labeled Egyptian cotton products by an Indian textile manufacturer to US big box retailers
US-based JCPenney probing cotton supplies
Target Corporation, a US-based retailer, terminated its supply contracts due to quality issues
The termination of contracts by Target is a big setback to Welspun which touted itself as the biggest supplier to western retailers
Current contribution stands at 5%; company banks on product innovation, inorganic moves for the growth