Soon after Target Corp severed ties with Welspun India, alleging that Welspun used cheaper quality cotton while supplying bedsheets, passing it off as premium Egyptian cotton, Walmart has decided to stop selling the same too after the Indian manufacturer was unable to assure them that the product was genuine.
The retailer will offer customers, who purchased the products, a full refund.
“Welspun has not been able to assure us the products are 100 percent Egyptian cotton, which is unacceptable,” Walmart said in a statement. The company will pull the products from its stores and website.
However, the company has not severed ties completely, but will work with Welspun to implement strong controls and better label the products.
READ MORE: Target Corp severs ties with Welspun India
Walmart Inc, which is the world’s largest retailer, had been in the process of reviewing supplier Welspun India Ltd’s cotton certification records after Target terminated business with the Indian manufacturer.
According to its website, Welspun Group hopes to become one of India’s top 50 groups by 2020, with a market value of $2 billion.