Kurlon, the mattress brand, is planning to invest Rs 200 crore in innovation, new technology to double its product portfolio and expanding its footprint over the next two-three years to consolidate its growth in home furnishings and furniture business.
“The company is looking at investing Rs 200 crore in innovation, new technology to double product portfolio and add more stores across the country in the next two-three years to strengthen the brand’s growth in home furniture and furnishings segment,” Girish H Mallikarjunaiah, head-marketing and digital E-Com at Kurlon Enterprise told Financial Chronicle.
The Bangalore-based firm is also targeting over 25 per cent sales growth over industry’s 15 per cent, he said.
Mallikarjunaiah said the company plans to set up three more mattress manufacturing factories in Assam, Andhra Pradesh and Odisha to more than double its capacity to 2,50,000 mattresses per month.
These factories will be ready for commercial production by 2021, he said.
At present, Kurlon has10 manufacturing plants spread over the country: six in south Karnataka, and one each in Roorkee, Uttarakhand, Bhubaneshwar, Odisha, Jaghadia, Gujarat, Gwalior, Madhya Pradesh.
These 10 factories have an installed capacity to produce 1,10,000 mattresses per month. “This year we are looking at a higher growth rate of 25 per cent on account of the retail boom in the country and enhanced product range in our portfolio,” Mallikarjunaiah said. The company clocked Rs 1,050 crore in sales turnover last financial year.
Kurlon Enterprise, which recently started selling sofas, has over 40 per cent market share in the mattress industry at present.
Mallikarjunaiah said the organized mattress industry size in India was pegged around Rs 3,000 crore annually and growing at about 15 per cent. Kurl-on competes with brand such as Sleepwell, Duroflex and Nilkamal, among others, in the country. Kurlon is also expanding its company owned and company operated retail network to 200 outlets across the country under the 'Home Komforts' brand. At present, it has 32 such stores. With the addition of ecommerce marketplaces including Amazon and Flipkart, the Kurlon products are currently available in 10,000 sales points, Mallikarjunaiah said.
The company generates around 2-3 per cent of its total sales from the ecommerce platforms including its own website.
Kurlon retails a wide range of sofa sets through four retail outlets branded as 'Sofa World'. It plans to expand the network to 100 stores in the next one year.