Kurlon targets 25-30% revenue growth in FY19

Mattress maker Kurlon today said it is targeting a revenue growth of 25-30 per cent in the current fiscal year, on the back of healthy demand.

The company had reported over Rs 1,000 crore revenues last year, according to Kurlon managing director Sudhakar Pai.

"This year we should be able to grow anywhere between 25 and 30 per cent," Pai told PTI.

The Bengaluru-based company claims to enjoy over 40 per cent market share in the organised mattress industry.

The total mattress industry is pegged at Rs 6,000 crore,of which the organised segment accounts for 25 per cent.

Pai said the company has the ability to grow at 40-50 per cent in this segment.

Kurlon, which introduced sofas two to three years ago in its own stores, is embarking on a pan-India rollout for the same and expects the segment to capture at least 5 per cent market share in the Rs 12,000-crore industry in two years.

"Our revenue (from sofas) is less than 1 per cent of the turnover, but we feel this is a very strong growing area. We should be able to grow anywhere between 60 and 70 per cent in this segment in days to come," he said.

The company, which has invested Rs 20 crore in the sofa business so far, and has a facility in Bengaluru, is also planning to add two to three manufacturing plants for sofas.

"In a couple of years when the demand picks up, we should be able to open two more factories. One would be in Gujarat and the other could be in Assam or Bhubaneshwar," he said adding that the factories' locations are not finalised.

Kurlon, which retails sofas in the price range of Rs 25,000 to Rs 1,75,000, has 31 owned-stores under the brand Home Komfort and plans to take this tally to 200 by FY19-end.

"At present (it is) company owned, but we will soon go to the franchisee model as well," Pai said adding that each store entails an investment between Rs 10 lakh and Rs 50 lakh.

He said the company is also scouting for opportunities to grow inorganically in the home comfort category and is "seriously" pursuing it as the firm is debt-free.