Target fiasco to affect Welspun's other global clients: Baliga

Target Corp has decided to end all its ties with Welspun India, after the latter sent another type of cotton in place of promised Egyptian cotton. While this could be a genuine mistake, it is going to impact Welspun's business from other major global clients as well, says independant market analyst, Ambareesh Baliga.However, sales in India and other third world countries, he says, would hardly be affected.  Post the news, management said that it will be appointing auditors soon to look into the issue. This is a damage control exercise to buy more time according to Baliga. Target contributed to 10 percent of the overall business in the last fiscal for Welspun. Watch video for more.