Sheela Foam to buy rival mattress maker Kurl-on for Rs 2,000 crore

The combined entity will have a market share of more than 50 per cent in India's organised mattress space

One of India’s largest mattress manufacturer Sheela Foam will reportedly soon acquire competitor Kurl-on for Rs 2,000 crore ($241 million), according to media reports.

Ghaziabad-based Sheela Foam sells mattresses under the brand Sleepwell. It commands a market share of about 25 per cent of the Rs 17,000-crore organised mattress segment, according to an ICICIdirect report.

The combined entity will have a market share of about 35-40 per cent in India’s organised mattress space, according to media reports. 

The brokerage also said that the mattress sector is expected to grow at 12 per cent compound annual growth rate between 2021-22 (FY22) and 2025-26.

“Organised players are likely to gain market share through new product launches and strong balance-sheet conditions,” it said.

According to media reports, Kurl-on’s Chairman and Managing Director Sudhakar Pai has been looking to hand over the reins.

This comes at a time when other industry players like Duroflex, Springwell, and The Sleep Company have raised money from private equity (PE) firms over the past few years, according to multiple media reports.

Kurl-on’s net profit stood at Rs 6.1 crore in FY21 compared to Rs 9.7 crore in FY20. Also, its net sales declined to Rs 71.9 crore in FY21 from Rs 114.7 crore in FY20.  

and nine manufacturing facilities across Karnataka, Odisha, Madhya Pradesh, Uttaranchal, and Gujarat, according to its website.

As the only listed mattress maker in the country, shares of Sheela Foam surged as much as 5 per cent to Rs 1,338, following the report. They closed 1.75 per cent higher at Rs 1,296.95 apiece on the BSE.