Kurl-On, India’s leading mattress manufacturer, has announced plans to enter into retail and divest 25 per cent of the company’s stake to pump in the required amount for investment.
The company will generate this amount through its stake from a public offering and open around 200 new stores by mid-2009 to retail a portfolio of around 8,000 designs across the country.
Speaking to the media about the company’s divestment plan, T Sudhakar Pai, managing director, Kurl-On, said, “We were planning to go for the offering earlier but due to volatile market conditions, had to postpone it by two-three months. We are keen to have this stake divestment within this period through a public offering.”
However, he did not disclose any details on the valuation and the exact price of the divestment.
“At present, the company is running a trial project for the home furnishing segment in selected markets across the country and plans to roll out 200 new stores by mid-2009, most of them as a shop-in-shop format,” added Pai.
Explaining the expected growth of the company’s retail segment, Pai further added, “The company is looking for a 20 per cent share of the estimated Rs 5,000-crore Indian home furnishing market by 2010-11.”