Sheela Foam, India’s premier mattress manufacturer, is poised to take over competitor Kurlon with a calculated bid of Rs 2,000 crore in order to expand its dominance within the industry. This transaction was reported by ET Now who have cited sources close to the deal.
Kurlon has made a name for itself in India with its Kurl-on mattresses, having established over 10,000 dealerships nationwide as well as 72 branch offices and stock points. Furthermore, it operates nine massive manufacturing facilities spread throughout Karnataka, Odisha, Madhya Pradesh, Uttaranchal and Gujarat.
By combining their forces, the two entities will have more than 50% of India’s organized mattress market share. The industry size is estimated to range from Rs 15,000 crore to Rs 17,000 crore according to ET Now. This merger could revolutionize the mattress space in India and create immense opportunities for growth in this sector.
In an email response to ET Now, Sheela Foam declined to offer any comments regarding market speculation.
With Kurlon’s market share slipping and the company has dropped to third place in India’s organized mattress sector, the proposed acquisition comes at a strategic moment. Currently, Duroflex sits in the second position as one of India’s foremost mattress makers.
In the past few years, private equity firms have given financial backing to a multitude of mattress makers such as Duroflex, Springwell, and The Sleeping Co.
Sheela Foam shares sky-rocketed up to a 5% increase, reaching Rs 1,338 following the report’s release. The stock ultimately settled closing in at Rs 1,296.95 on BSE – that is an impressive gain of 1.75%.
According to various reports, Sudhakar Pai, Chairman and Managing Director of Kurlon Limited are searching for a successor.
The mattress market in India is currently booming and the proposed takeover could pave the way for Sheela Foam to become one of India’s leading mattress manufacturers. The final details have yet to be released, but both companies appear to be well on their way to a successful merger.
Only time will tell if this deal goes through and what the implications of such a union would be for the mattress industry in India. In the meantime, investors are keeping an eye on Sheela Foam’s shares to see how they evolve in light of the news. Stay tuned for more updates as further information becomes available.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.