Acqusition to boost Kurl-on’s revenue to Rs. 2,200 crores in the next two years
Mumbai, April 16, 2019 (GPN) : Kurl-on, India’s leading brand of mattresses, furniture and furnishing products, today announced the acquisition of Spring Air, the leading International brand and amongst the top 10 manufacturers of bedding products in the world, for an undisclosed amount. The acquisition covers Spring Air’s operations across India, Bangladesh, Srilanka and Pakistan. With this acquisition, Spring Air and Englader brand of mattresses will now be under the Kurl-on umbrella. The acquisition will strengthen Kurl-on’s presence in the premium bedding segment, besides enabling them penetrate the fast growing demand in the hospitality sector and is in line with Kurl-on’s aggressive expansion strategy of both its product portfolio and retail presence.
Spring Air’s product portfolio of niche, specialised products ranging across the premium and luxury category will now be available across Kurl-on’s 1300+ exclusive franchise outlets and 7000+ multi-brand outlet across the country, besides its 93 Kurl-on Home Komfort stores, providing its high-end customers a wider choice. In addition, it will continue to be retailed at Spring Air’s 400 high end retail stores. Under the terms of the sale agreement, Spring Air will continue to manufacture its bedding products from its two manufacturing centres, complementing Kurl-on’s existing ten manufacturing facilities.
Announcing the details of the acquisition at a press conference here in Mumbai, Mr. Sudhakar Pai, Chairman & Managing Director, Kurl-on, said “At Kurl-on, we are focused on enhancing our product portfolio backed by R&D and new technologies. While Kurl-on regularly invests on R&D, we are also open to exploring newer avenues for technological advancements and it is here, where we saw a fitment with Spring Air.” “The acquisition will contribute to Kurl-on crossing the Rs. 2,000 crore revenue mark in the next two years. We are enthusiastic about our common vision, the similarities in our culture of innovation, and the added value we can create for customers”, he further added.
“Retail expansion continues to be one of the key imperatives for Kurl-on. With this acquisition, Kurl-on will now be able to offer the premium range of mattresses across the length and breadth of the country” added Ashutosh Vaidya, Chief Marketing Officer – Kurl-on.
“Given the increasing consumer spend on home furnishing and decor, we see significant premiumisation in this sector in line with international markets. This deal adds premium international brand of Spring Air and Englader to Kurl-on’s existing portfolio. We have planned a well thought out transition plan to fully harness the synergies and will work together to achieve the same”, said Ashok Kumar, CEO & Member of the Board, Spring Air Bedding Company India Ltd and Spring Air Middle East.
Over the last one year, Kurl-on has made significant investments in R&D and new technologies. The introduction of the sofa range for the untapped semi-premium market; the introduction of innovative products – “STR8” (India’s first Sag Proof Mattress); Mattress In A Box” (Snooze Centre) and “Kooler mattress top” – lends credence to Kurl-on’s thrust and focus to offer innovative home comfort products.
The mattress industry has undergone a profound transformation in recent years. Currently at INR 10,000 crore, the mattress industry is projected to reach INR 14,000 crore by 2021, according to statistics provided, with a CAGR of 9%. According to some studies, consumer preferences have also witnessed a marked shift in preferences wherein consumers are willing to spend higher amounts for quality mattress.
KPMG Corporate Finance was the transaction advisor for this deal. Ends