Sheela Foam, the parent company of two prominent mattress brands, Sleepwell and Kurlon, anticipates a double-digit Compound Annual Growth Rate (CAGR) of 14 to 15% in the short to mid-term, according to CEO Nilesh Mazumdar.
Last year, Sheela Foam acquired the Kurlon brand and has since rebranded it with a fresh logo and tagline. This move aligns with its aim to expand the Karnataka-based company’s business beyond the INR 1,000 crore mark.
Market Dynamics and Competitive Positioning
Presently, the Indian mattress market is valued at approximately INR 15,000 crore. Despite being largely controlled by local players, there has been notable traction towards branded players over the past 4-5 years, particularly in major cities, signaling a significant market shift.
“In the organized sector, combining both brands, we hold roughly 29-30% of the market share. Specifically, Sleepwell commands about 18%, while Kurlon holds 11%,” stated Mazumdar.
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Together, both brands stand significantly ahead of their competitors and are committed to further expanding their market share through innovative strategies.
When questioned about the company’s growth prospects, Mazumdar expressed, “We have a 3-5 year outlook, targeting a compound annual growth rate (CAGR) of approximately 14-15%.”
While he refrained from disclosing the turnover for each brand individually, he mentioned that combining both brands, the company generates approximately INR 3,000 crore in revenue from operations.
Sheela Foam finalized the acquisition of Kurlon last October, and the ongoing integration process is expected to span a couple of quarters before completion.
According to Mazumdar, both brands will maintain “independent” operations and identity.
“Kurlon remains an independent brand, as does Sleepwell in the consumer’s perception. We intend to preserve their distinctiveness, ensuring they remain entirely separate entities in the consumer’s mind,” he explained.
Regarding the rebranding of Kurlon, Mazumdar mentioned the goal is to render it more “modern and contemporary.” He further noted that this initiative will be supported by a new television campaign.
Both brands will also capitalize on synergies, leveraging shared resources in retail channels, media investments, and the procurement of raw materials, potentially enhancing their scale.
Regional Market Presence and Expansion Plans
Although both brands have a nationwide presence, Kurlon holds a robust market presence in the South and Eastern regions, whereas Sleepwell dominates in the North and West regions.
“As we progress, both brands will establish a national presence. The current investment in enhancing Kurlon’s brand image through media and communication aims to ensure its robust national presence,” added Mazumdar.
In addition to mattresses, Sheela Foam is expanding its business into adjacent categories like pillows and technical foam.
“Sheela Foam has already established itself in various categories, such as cushions and technical foam. Moving forward, we’ll maintain our presence in these categories,” he stated.
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