Sheela Foam Ltd, the maker of popular mattress brand Sleepwell, is in advance talks with rival Kurlon to acquire its business, according to industry sources.
If it goes through, the deal will help Sheela Foam, a market leader in the fast-growing branded mattress category, to expand its business in South, West and other markets where Sudhakar Pai-led Kurlon has a strong presence, a source said.
The deal will also help Sheela Foam to incrementally increase its capacity as the Pai family-led Kurlon has 9 strategically located manufacturing facilities across Karnataka, Orissa, Madhya Pradesh, Uttaranchal and Gujarat.
According to reports, the deal is estimated to be around USD 241 million (nearly Rs 2,000 crore).
Comments from Sheela Foam and Kurlon could not be obtained.
Sheela Foam is the only listed company operating in the mattress space and commands nearly 25 per cent market share.
For the financial year that ended March 31, 2022, Sheela Foam’s net revenue from operations on a consolidated basis was Rs 3,061 crore.
Established in 1962, Kurlon is one of the oldest mattress companies in India.
The Indian mattress market is witnessing a steep increase in sales, largely driven by consumer awareness and inclination towards health & hygiene, government investments for the betterment of health sector infrastructure, and rising demand for new mattresses from the real estate and hospitality segments, said Sheela Foam in its latest annual report.
Besides Sheela Foam and Kurlon, other industry players include Duroflex, Springwell and The Sleeping Co. PTI KRH RKL KRH BAL BAL
