Duroflex to push ahead with IPO, eyes double-digit revenue growth

Indian mattress maker Duroflex is looking to go public in the next 18 months and is charting out plans to hit double-digit revenue growth in the next few years, its top boss told Reuters.

The company, which competes with Sleepwell-owner Sheela Foam and Wakefit in the more than $2 billion mattress market, however, did not disclose how much it plans to raise or whether the listing would be a fresh issue or an offer for sale.

"Markets are what the markets are. That's not something within our control ... Boringly consistent performance is generally what does the trick with the markets," Duroflex CEO Sridhar Balakrishnan said.

Duroflex, founded about six decades ago in the south Indian state of Kerala, receives 85 per cent of its revenue from mattresses. It plans to double the contribution from other categories, including recliners and sofas, over five years.

Global mattress sales have slowed since the height of the Covid-19 pandemic, when people splurged to upgrade their bedrooms, but analysts expect the focus on wellness to drive steady growth in the sector.

For Duroflex, which owns the Sleepyhead brand, revenue would grow in the double-digit percentage range over the next three years, with profits rising faster, Balakrishnan said.

The company posted sales of ₹1,001 crore ($117.53 million) and core earnings of ₹43,900 crore in fiscal 2024, data from business insights provider Tofler showed.

In the latest financial year, Duroflex's revenue climbed in single-digit percentage range, Balakrishnan said, with core earnings jumping more than 50 per cent.

The company also plans to open 20 to 25 stores to reach 100 locations by the year-end.