On the BSE, the Welspun India stock hit the lower circuit, closing at Rs 82.30, a drop of Rs 20.55, or almost 20 per cent. "After an extensive investigation, we recently confirmed that Welspun substituted another type of non-Egyptian cotton while producing these sheets between August 2014 and July 2016. As soon as our investigation confirmed the substitution, we pulled all the remaining products from Target stores," a statement issued by the US-based company said. According to the US company, it discovered 7,50,000 sheets and pillowcases which were labelled as Egyptian cotton but were made with a different type of cotton. Target accounted for nearly 10 per cent of Welspun India's revenues for the year ended March 31, 2016.

Source: The Telegraph August 22, 2016 19:44 UTC