Company accused of selling fake Egyptian cotton invited to open factory in Egypt

Industry and Trade Minister Tarek Qabil has invited Welspun India, a company previously accused of selling fake Egyptian cotton, to open a factory in Egypt. He asserted that this will allow them to profit from the “many incentives and benefits that Egypt offers in the field of textile manufacturing, most importantly the availability of raw materials and skilled labor.”

In an official statement on Wednesday Qabil stressed “the importance of maximizing the benefits from the internationally certified Egyptian cotton label in order to preserve its reputation." He claimed some are attempting to negatively impact the cotton's international standing "by mixing it with lower quality cotton, which in turn affects the quality of the final product.”

However Welspun India, the very company that the minister invited to operate in Egypt, has been accused of doing just that. Last August Target Corporation, an American retailer, accused the company of delivering 750 thousand bed sheets falsely labeled as premium Egyptian cotton, despite the fact they were made of cheaper fabric.

Target terminated their contract with Welspun as a result, costing the textile company US$90 million in annual sales. The General Manager admitted to providing falsely labeled fabric, prompting all major clients to inspect their products. Following the incident several American companies started a campaign demanding a boycott of Egyptian cotton, calling for it to be replaced with American Pima cotton.

Bloomberg published an article last August immediately after the scandal titled “The Frayed Reputation of Egyptian Cotton,” which called for consumers to disregard the Egyptian cotton label entirely, claiming that it no longer guaranteed a higher quality.