Supply Chain Snafu Strikes Welspun

A crisis recently hit Welspun India Ltd. amid allegations by retailers such as Target that the company’s sheets, which purportedly were made with “Egyptian cotton” were in fact made with other types of fabric. Target suspended its ties to Welspun, while other retailers, such as Wal-Mart and Bed, Bath & Beyond are investigating the charges of misidentified products in what media reports have described as a “sheet storm.”

The company, based in Mumbai, India, issued a statement saying that the matter grew out of a “product specification issue with one client program of our subsidiary, WGBL.”

The statement promised a thorough investigation by third-party auditors from one of the “Big Four” accounting firms to try and determine the source of the problem with the company’s sheets. “We have initiated immediate actions to investigate the root cause,” Welspun Company Secretary Shashikant Thorat said in the release. “We are appointing an external auditor (one of the Big Four) to audit our supply systems and processes. This is an issue of highest priority for us and we will take all necessary steps to address it.”

The release added that, “We have an impeccable record of supplying quality products to our customers globally for over two decades. We reiterate our commitment to the highest standards of customer service and compliance.”

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