Company Update : Sheela Foam Pvt Ltd by Prabhudas Liladhar Capital Ltd
Focus shifting from integration to expansiona
We recently interacted (in a group meeting) with the management of Sheela Foam Ltd (SFL). The management remains optimistic on the company’s medium-term growth prospects, driven by market share gains, distribution expansion, e-commerce penetration, and the successful integration of Kurl-On. SFL has already realized ~INR1.9bn of the targeted INR2.5bn synergy benefits from Kurl-On acquisition, with the balance expected to be captured by H1FY27. SFL continues to aggressively expand its retail footprint, supported by the unorganized-to-organized transition (U2O, previously called Small Town India initiative), and deeper penetration of Kurl-On in North and West India.
To tap the large value mattress opportunity, the company has launched Tarang and Aaram mattresses, targeting the sub-INR10,000 segment, while premiumization and market share gains remain key focus areas. E-commerce continues to emerge as a meaningful growth channel, supported by strong growth across both marketplaces and owned platforms. The management also highlighted Furlenco as a strategic growth platform within the broader home comfort ecosystem, targeting revenue of INR5.0– 5.5bn by FY27. International operations in Australia and Spain remain focused on profitability improvement through operational efficiencies and pricing discipline. Despite recent raw material inflation, the management expects margins to remain supported through price pass-through mechanisms and operational efficiencies. Not rated.
SFL is India's largest branded mattress player and a leading manufacturer of polyurethane foam products. Through brands such as Sleepwell, Kurl-On, Feather Foam and Lamiflex, the company caters to both consumer and industrial markets. At its core, the business leverages a dual-brand framework, positioning Sleepwell as a premium, innovation-driven brand and Kurl-On as a value-focused brand for mass segments, ensuring balanced volume and value growth across high-growth regions. The company is executing a strong premiumization strategy focused on luxury mattresses, foambased solutions, and high-margin adjacent categories to drive value-led growth. Simultaneously, it is looking to increase domestic market penetration through an extensive dealer network driving the U2Otransition
SFL is adopting an omni-channel approach that seamlessly integrates physical retail expansion—including new showrooms and company-owned, company-operated stores—with a scaling e-commerce platform to capture consumers researching online and buying offline. In order to protect margins and ensure sustainable, long-term profitability, the company is pairing this commercial push with targeted backend investments in raw material capabilities, supply chain resilience, and operational excellence.
Business overview
India’s leading mattress and PU foam company
Founded in 1971, SFL is India’s largest mattress company with a market share of ~30% in branded domestic markets. SFL is also one of world’s leading manufacturers of polyurethane (PU) foam products. SFL operates across mattresses, comfort foam, technical foam, and furniture cushioning, serving both retail consumers and industrial customers through a diversified portfolio of brands and an extensive distribution network. SFL’s flagship brands include Sleepwell, Kurl-on, Feather Foam and Lamiflex.
SFL operates 19 manufacturing units across India, Spain and Australia with a total production capacity of 178,000 MTPA. International operations are carried out through Joyce Foam Products (Australia) and Interplasp (Spain) which together provide geographical diversification and access to developed markets. SFL has a ~40% market share in branded Australian mattress market.
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SEBI Registration No. INH000000271
