Sheela Foam plans to foray into Middle East

Sheela Foam, makers of Sleepwell mattresses, is planning to foray into the Middle East markets with an aim to tap Indian diaspora, and the company expects contribution from export to be in double digit over the next two to three years.
Besides, the company, which would tomorrow launch its initial public offer to raise Rs 510 crore, is also considering to have new units in Madhya Pradesh for the Central region and in Eastern UP.
"In Middle East region, brand is registered there and we would be able to send material there. Although, transport cost for mattress is very high but fortunately for places as Dubai charges are reasonable," Sheela Foam MD Rahul Gautam told PTI.

Presently, the company has Rs 1,600 crore turnover, of which Rs 300 crore comes from its Australia-based wholly owned subsidiary Joyce Foam Pty Ltd.
The company is present in the neighbouring markets of Nepal, Bhutan, Bangladesh and Sri Lanka.
On being asked that whether the contribution from export would be in double digit in coming years, Gautam said "For sure. It would be in next 2-3 years".

However, he also added that potential of the domestic market is very high and after the implementation of GST, it would grow further.
Sheela Foam, which presently operates 11 plants, is also considering to have two more units to cater Eastern UP and central India markets.

"As we go forward, we may have one or two units, which would be catering to the markets of central India and Eastern UP," Gautam added.
After listing of Sheela Foam, promoters would have around 85 per cent shares of the company.
The company has fixed the price band at Rs 680-730 for the offer, which will remain open to bidding from November 29-December 1.
"The company will not receive any proceeds from the offer and all proceeds from the offer will go to the selling shareholder," said Sheela Foam.
Sheela Foam also manufactures foam-based home comfort products like mattresses, furniture-cushioning, pillows, cushions and sofa-cum-beds.

The company has 12 pan-India distribution network consisting of over 100 exclusive distributors, more than 2,000 exclusive retail dealers and over 2,500 multi-brand outlets.