Duroflex Plans IPO, Targets Double-Digit Revenue Growth

Indian mattress manufacturer Duroflex is preparing to go public within the next 18 months, aiming for sustained double-digit revenue growth in the coming years. The company, which competes with Sleepwell-owner Sheela Foam and Wakefit in the $2 billion mattress market, is positioning itself for expansion while diversifying its product offerings.  

 

Founded six decades ago in Kerala, Duroflex generates 85 percent of its revenue from mattresses. However, the company plans to increase contributions from other categories, including recliners and sofas, over the next five years. CEO Sridhar Balakrishnan emphasized the importance of consistent performance in market success, stating that steady growth remains the company’s priority.  

 

Global mattress sales have slowed since the peak of the COVID-19 pandemic, but analysts expect continued demand driven by wellness trends. Duroflex, which owns the Sleepyhead brand, anticipates revenue growth in the double-digit percentage range over the next three years, with profits rising at an even faster pace.  

 

The company reported sales of 1,001 crore rupees and core earnings of 44 crore rupees in fiscal 2024. In the latest financial year, revenue climbed in the single-digit percentage range, while core earnings surged by more than 50 percent. Duroflex also plans to expand its retail presence, opening 20 to 25 new stores to reach 100 locations by the end of the year.  

 

Business outlook:  

- Duroflex plans IPO within 18 months, targeting sustained revenue growth  

- Company aims to diversify product offerings beyond mattresses  

- Revenue expected to grow in double-digit percentage range over the next three years  

- Core earnings increased by more than 50 percent in the latest financial year  

- Expansion strategy includes opening 20 to 25 new stores by year-end  

 

Sources: Moneycontrol, Business Standard, The Hindu Business Line, MSN Money