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Sheela Foam sees 14-15% CAGR growth in next 3-5 yrs: CEO Nilesh Mazumdar

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Currently, the Indian mattress market is estimated to be around Rs 15,000 crore

New Delhi: Sheela Foam, which owns two leading mattress brands — Sleepwell and Kurlon — expects a double-digit CAGR growth of 14 to 15% in short to mid-term, its CEO Nilesh Mazumdar has said.

Sheela Foam, which acquired the Kurlon brand last year, has rebranded it with a new logo and tagline, as it expects to scale up the Karnataka-based company’s business beyond Rs 1,000 crore.

Currently, the Indian mattress market is estimated to be around Rs 15,000 crore. Though the market is still dominated by local players, in the last 4-5 years, branded players are getting good traction and a shift is happening towards them in key cities.

“When we look at the organised sector, both the brands put together, we have about 29-30%  market share. In mattress, Sleepwell has around 18% market share and Kurlon has 11% ,” Mazumdar told PTI.

Both the brands put together, are distinctly ahead of their rivals and would focus on gaining market share further with innovations.

When asked about the company’s growth outlook, Mazumdar said: “We have a 3-5 year outlook. We are looking at about 14-15% compound annual growth rate (CAGR) growth.”

Though he did not share a brand-specific turnover, he said putting both brands together, the company has around Rs 3,000 crore in revenue from operations.

Sheela Foam completed the transaction to acquire Kurlon last October and the process of integration is currently going on, which may take a couple of quarters to complete.

According to Mazumdar, both brands will have “independent” operations and identity.

“Kurlon is an independent brand. Sleepwell is also an independent brand in the consumer’s mind and we will keep both of them completely independent of each other, as far as the consumer mind space is concerned,” he said.

Over the rebranding of Kurlon, Mazumdar said the endeavour is to make it more “modern and contemporary”. This will be backed by a new television campaign, he added.

Both brands will also have some synergy and will have leverage in areas such as retail channels, media investments and manufacturing and procurement of raw materials, which may provide a scale.

Though both brands have a pan-India presence, Kurlon as a brand has a strong presence in the South and Eastern regions. While Sleepwell is strong in the North and West regions.

“But as we move ahead, both the brands are going to have a national presence and the investment that we are doing on Kurlon as a brand now with the media and the communication and the entire exercise about giving it a new identity is to make sure that it has a national strong presence,” Mazumdar added.

Besides mattresses, Sheela Foam is also extending its business to adjacent categories such as pillows, technical foam etc.

“We already have a presence in other categories like pillows, technical foam which is another business in which Sheela Foam already has a presence. So these are the categories we will be keeping as we move ahead,” he said.

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