Kurlon plans Rs 250 crore expansion of capacity

Bengaluru-based manufacturer of mattress, sofa and furniture Kurlon Enterprise Limited is embarking on a major expansion of its production capacity with an investment of Rs 250 crore.

The company plans to set up three more mattress manufacturing plants in the states of Assam, Andhra Pradesh and Odisha to more than double its capacity to 2,50,000 mattresses per month. The expansion will be completed by 2021, Kurlon Managing Director Sudhakar Pai told DH.

Kurlon currently operates 11 manufacturing units across the country with a capacity of 1,10,000 mattresses per month. “We have been growing at 15-16% annually. This year we are looking at a higher growth rate of 25% due to retail boom in the country and enhanced product range in our portfolio,” Pai said.

The company has already acquired 65 acres land in Chittor district of Andhra Pradesh and in Bhubaneshwar for new factories. It is looking for suitable land in Assam, he said.

The company, which recently started selling sofas, currently holds over 40% market share in the mattress industry. While the mattress industry size is estimated at Rs 10,000 crore, the organised segment accounts for Rs 2,000 crore.

Kurlon is also expanding its retail network to 200 outlets under the 'Home Komforts' brand. Presently, it has 32 such outlets. With the addition of ecommerce marketplaces including Amazon and Flipkart, the Kurlon products are currently available in 10,000 sales points, he said.

The company generates around 2-3% 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 outlets in the next one year, Pai said.

He said the company has recently entered into an agreement with Swedish furniture retailer Ikea for supplying sofas. Ikea will be retailing them through their stores in Australia, West Asia and in India.

Kurlon, which reported a turnover of Rs 1,070 crore in 2017-18, is aiming at a turnover of Rs 1,350 crore in FY19.