The evolution of Kurlon Enterprise dates back to 1962 in the form of Karnataka Consumer Products Limited. The company was established for manufacturing accessory products for the purpose of relaxing and sleeping. The company got renamed to Kurl-on limited. Born out of organization restructuring in 2014, Kurlon Enterprise Limited (KEL), is a part of Manipal Group which has diversified interest across financial services, manufacturing, education, electronic commerce, software services etc.
KEL manufactures and sells a wide range of home comfort solutions and high- end soft furnishings such as pillows, cushions, bed lines/sofa to ergonomically designed furniture etc. KEL manufactures mattresses in 126 different configurations. Within mattresses segment the company manufactures mattresses (Spring, Foam, Coir and Therapeutic) and foam (Memory, Eloquence, Heera and Polycool). The promoter of Kurlon Enterprise Limited (KEL) is Kurlon limted and it holds 85.06% share of the company. Other noteable investors in Kurlon Enterprise Limited include International Finance Corporation (IFC), Washington (Part of World Bank Group) and Motilal Oswal Private Equity (MOPE) together owns nearly 10-12% stake in the company.
Competitive Position:
KEL has a strong distribution network as indicated by a pan-India network of 7000+ Dealers/Retailers along with 1500+ Exclusive stores under 3 different formats (namely Kurl-On Home Komforts, Kurl-On Mattress Xpress and Kurl-On Korner), 70 Area Sales office with local godowns & 4 centralized warehouses located in Delhi, Pune, Bengaluru and Bhubaneshwar. It also sells products through 3,450+ multi-brand outlets. There are 90 Company owned and Company Operated stores (“COCO”) as of FY19.
The organized market for mattress is nearly 36%, out of which KEL has a market share of nearly 17%, making it the largest organized player. Additionally, as the market share of organized sectors grows in comparison to the share of unorganized sector owing to reforms carried by government (GST, demonetization and so on), KEL has a very compelling growth path ahead.
Financial Performance:
Growth in revenue was flat at 0.73% owing to the challenging environment. Expenses increased owning to higher spends in Advertisement, Promotion & Selling Expenses (6% increase over FY18 to Rs. 140 crs) and opening of new stores added to lease rental costs and associated costs.
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