India’s largest mattress manufacturer Sheela Foam will reportedly soon acquire competitor Kurlon for Rs 2,000 crore to further expand its footprint, ET Now reported citing unnamed sources.
Kurlon sells Kurl-on branded mattresses and it has a presence across India with more than 10,000 dealers, 72 branches and stock points. Kurlon also has nine manufacturing facilities across Karnataka, Odisha, Madhya Pradesh, Uttaranchal and Gujarat.
The combined entity will have marketshare of more than 50% in India’s organised mattress space, with the industry size ranging from Rs 15,000 crore to Rs 17,000 crore, according to ET Now.
Sheela Foam in an email response to ET Now has said it will not comment on market speculation.
The potential acquisition comes at a time when Kurlon has been losing its marketshare and slipped to third place in India’s organised mattress industry. Duroflex is now India’s second-largest mattress maker.
Also, several mattress makers including Duroflex, Springwell and The Sleeping Co have raised funds from private equity firms in recent years.
Shares of Sheela Foam surged as much as 5% to Rs 1,338 following the report. It closed 1.75% higher at Rs 1,296.95 a piece on the BSE.
According to media reports, Kurlon Chairman and Managing Director Sudhakar Pai has been looking to hand over the reins.
Source: Economic Times