In a strategic move to capture a larger share in India’s mattress and furniture market, mattress manufacturer Sheela Foam Ltd announced its plans to acquire a substantial stake in two prominent players in the industry. The company revealed its decision to purchase a 94.66% stake in Kurlon, a leading foam and coir-based home comfort products manufacturer, for a staggering Rs 2,150 crore. Simultaneously, Sheela Foam is set to acquire a 35% stake in House of Kieraya Pvt Ltd, the parent firm of Furlenco, a well-known online furniture rental service provider, for Rs 300 crore.
The acquisition of Kurlon Enterprise Ltd is expected to be finalized on or before November 30, 2023, following approvals from relevant authorities. The move will significantly contribute to consolidating the fragmented market of mattresses and foam-based products in India. Kurlon, with its extensive range of ‘sit and sleep’ categories, including mattresses, furniture cushions, pillows, and coverings, has firmly established itself in the industry since its inception in 1962. Under the leadership of Jyothi Pradhan, Kurlon has garnered a strong presence across southern and eastern regions of India. The acquisition will complement Sheela Foam’s stronghold in northern and western India, creating a formidable pan-India footprint.
Sheela Foam’s decision to acquire a substantial stake in House of Kieraya Pvt Ltd marks a strategic entry into the rapidly growing branded furniture market. As the parent company of Furlenco, House of Kieraya operates an online furniture rental service that has gained significant traction in cities like Bangalore, Mumbai, and Delhi NCR. With a turnover of Rs 129 crore in FY22 and Rs 152 crore in FY23, Furlenco’s strong online presence and customer base align well with Sheela Foam’s expansion plans.
The acquisitions are part of Sheela Foam’s larger vision to diversify its customer base and strengthen its market position. The move will not only bolster the company’s presence in the mattress and furniture sectors but also provide an opportunity for synergistic growth. As a leader in the northern and western regions of India, the acquisition of Kurlon will allow Sheela Foam to tap into new markets and offer a wider range of products to its customers. Similarly, the entry into the branded furniture market through Furlenco will enable the company to cater to the increasing demand for modern and stylish furniture solutions.
The acquisitions reflect Sheela Foam’s commitment to sustained growth and innovation in the home comfort industry. With its strong financial standing and strategic vision, Sheela Foam is poised to redefine the market landscape and continue its journey as a leading player in India’s mattress and furniture sectors.
