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Magniflex India plans 70 new stores in FY25, aims for 60% CAGR growth

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The company also anticipates achieving growth of at least 200% over the next two to three years

Bengaluru: Italian mattress company Magniflex is planning to expand its retail presence in India by adding up to 70 new stores including franchise and dealer network outlets in the fiscal year (FY) 2025, a top company official told IndiaRetailing.

“We are preparing for an aggressive expansion as we haven’t yet reached consumers in many states,” said Anand Nichani, managing director, Magniflex India.

“In recent years, our primary focus has been on the South, excluding Kerala. We are set to expand into Central India, North India, and Kerala. We believe there is significant potential in these zones,” he added.

Magniflex has been operational for almost 62 years, available in over 100 countries, producing about 10,000 mattresses daily from its sole manufacturing plant in Italy, making it one of the largest mattress manufacturing plants in the world.

The company entered the Indian market 14 years ago. Today, Magniflex India is growing at a rate of 35%-40% year-on-year (YoY). The brand has over 80 dealer network stores and six franchisee stores in over 20 cities.

“This fiscal year, we aim to achieve a compound annual growth rate (CAGR) of up to 60%, up from our current growth rate of 35-40%. Over the next two to three years, we anticipate growing by at least 200%,” added Nichani.

India journey

Magniflex entered the Indian market in 2010 through Polyflex, a company that has been manufacturing motor vehicle seats since 1972.

The mattress retail giant has a strategy of collaborating with a single partner in each country for the long term. Polyflex, after selling the seating business, established a relationship with Magniflex Italy. The partnership has been successful, with Magniflex Italy providing substantial support for new product launches, development, and marketing.

Magniflex’s first store in India, a 1,200 sq. ft. franchise outlet, opened nearly 11 years ago in Bengaluru, featuring six to seven mattresses on display. Presently, this flagship outlet is witnessing an annual growth rate of 10%-15%.

“We initially faced challenges due to the nascent state of India’s luxury market. However, in the past five years, we have observed that consumers desire luxury products and are clear about their need for better sleep and an improved lifestyle,” said Nichani.

“Especially post-Covid, we have witnessed substantial market acceptance and growth, driven by increased awareness of health and wellness,” he added.

The brand primarily operates offline, although it started its online journey by launching pillows, mattresses and accessories on its own website.

The company is also optimistic about new partnerships and social media campaigns targeting consumers.

“We are in the final stages of discussions with two key hotel brands: one an international brand and the other a prominent Indian brand. Unfortunately, I can’t disclose any names at this moment,” he added.

Market dynamics

Nichani feels that Magniflex is poised to capitalise on the opportunities in India’s Rs12,000-crore mattress market, 40% of which (Rs 5,000 crore) is organised. The market, which is growing at a CAGR of 11% YoY, is divided into three segments based on mattress prices.

The low segment, priced at Rs 8,000 and below, represents approximately 25% of the market. The mid-segment, ranging from Rs 8,000 to Rs 30,000, makes up about 50% of the market. The premium segment, priced between Rs 30,000 and Rs 99,000, accounts for around 24% of the market. The luxury segment, priced at Rs 1 lakh and above, constitutes only 1% of the market, which is about Rs 50 crore.

“Magniflex currently commands approximately 50% of the luxury mattress market, equating to a market share of around Rs 25 crore. Additionally, with the luxury mattress market projected to grow at a 25% CAGR, we anticipate further expansion in our market share and revenue,” he added.

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