Balkrishan (BK) Goenka of Welspun Group had to roll back his ambitious backward integration plan between 2009 and 2011, when the company decided to diversify into other business areas such as sponge iron, steel slabs, thermal power and infrastructure. The reason was adverse impact of diversification on its earnings and contraction of the group’s market value. However, today he has managed to bounce back through restructuring his business empire.

Further, an order passed by markets regulator Sebi, banning some promoter entities of Welspun from participating in the capital markets due to alleged stock manipulation, added to the company’s woes, however, Goenka worked around the challenges faced by his company. He chalked out a strategy to bring down losses by selling assets and exiting non-performing businesses. All his efforts have resulted in today’s Welspun that enjoys a healthier balance sheet, a better debt profile, positive earnings growth in its textiles business.

Since September 22, 2013, Welspun India (WIL)—the textiles company that manufactures terry towels and home linen—has witnessed its share price multiply almost 14-fold from Rs 61.75 (on September 22, 2013) to Rs 832.20 per share (on September 22, 2015).

www.welspunindia.com