Kurlon Enterprise Ltd, India's largest mattress company, has focused on its core mattress business for the past 50 years, but is expanding its product portfolio into home furnishings to accelerate growth.
The company has added products such as linens, pillows, blankets, wardrobes, living room and bedroom furniture such as beds, sofas, and sofas.
“Over the next two to three years, we aim to grow at 10 to 12 percent, two to three times the market growth rate. By this point, we expect the non-mattress business to contribute about 30 percent of Kron's revenue. expected,” said Ravi Sagar, executive vice president.
Currently, businesses other than mattresses account for only about 10% of the company's revenue.
Kurlon's revenue for the year ended March 31 was approximately INR 800 million, Sagar said. According to a report by credit rating agency Icra Ltd, Kurlon reported operating profit as follows: INR 698.76 million, profit is INR Operating income for the year ended March 2014 was 4.89 billion yen. INR 727.75 million, profit after tax is INR The previous year was 0.04 billion yen.
“Kurlon has been strongly accepted as a brand. It won't be too difficult to break into new segments. But we're late to the party. These areas should have been explored a long time ago,” says Analyst, a global consulting firm. List spoke on condition of anonymity.
Over the next few years, Kurlon plans to increase its retail presence in the small town of about 25,000 people.
“We will aggressively leverage modern retail and e-commerce and also focus on the super premium segment,” Sagar said. INR At $100,000 each, they currently account for about 10% of Kurlon's revenue.
E-commerce is Kurlon's fastest growing channel. The company sells through online marketplaces such as Flipkart, Urban Ladder, Pepperfry, and Snapdeal, as well as through its own website.
Kron raised funding in October. INR According to a joint statement from Kahlon and Motilal Oswal, the company will receive an undisclosed investment from the India Business Excellence Fund, managed by Motilal Oswal Private Equity, to support additional production capacity, expand its distribution network, and expand its distribution network. It is said that 90 billion yen will be invested in marketing activities.
Founded in 1962, the company has a pan-India sales and distribution network supported by four centralized warehouses, 72 sales offices and over 160 dedicated showrooms.
The company works with more than 4,000 dealers and retailers. It has nine manufacturing facilities located in Karnataka, Gujarat, Madhya Pradesh, Utarkhand and Odisha.
The mattress market is largely unorganized in India.Unofficial industry estimates put the market size at approximately INR 500 billion. In the organized segment, Kurlon competes with brands like Sleepwell, Springfit, King Koil and Godrej Interio.
Kurlon spends a lot of money on advertising and promotion. This year, the company increased its spending on advertising and promotions to about 10% of its revenue, nearly double the average spending over the past three years. “This is going to continue,” Sagar said.
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Published: December 9, 2015, 1:15 AM IST
