- Wednesday, February 19, 2025
By: Shubham Ghosh
Indian mattress manufacturer Sheela Foam Ltd is set to acquire competitor Kurlon for Rs 20 billion (£201 million), ET Now reported on Wednesday (28), citing sources.
Sheela Foam could command a market share of 35-40 per cent should the deal finalises, Moneycontrol reported last month, quoting a source informed about the planned deal.
Sheela Foam, which sells the “Sleepwell” brand of mattresses, is the only listed mattress maker in India.
The company, which is based in Ghaziabad in the northern state of Uttar Pradesh, has a 25 per cent market share in the sector, said a note by ICICI Securities.
The brokerage pegs India’s modern mattresses sector at Rs 175 billion (£1.75 billion).
Sheela Foam shares rose as much as five per cent to Rs 1,338 (£13.44) after the report came out.
According to the Moneycontrol report, the news of the potential acquisition comes as Kurlon chairman and managing director Sudhakar Pai is looking to hand over the reins.
It also comes at a time when other players such as Duroflex, Springwell and The Sleeping Co have raised money from private equity firms over the past few years, according to media reports.
Kurlon’s annual consolidated net profit has slumped from Rs 760.9 million (£7.64 million) in fiscal year 2020 to Rs 179.7 million (£1.8 million) in fiscal year 2022.
Started in 1962 as Karnataka Coir Products Ltd, Kurlon presently has nine plants and 72 branch and stock points across the country.
