Sheela Foam to Buy Rival KurlonPublish Date: 29-Jun-2023 18:37:09

Sheela Foam, known for its brand Sleepwell, has announced its acquisition of Kurlon Enterprise, a rival company. The acquisition will involve the purchase of 100 percent of Kurlon Enterprise in two installments, amounting to a cash consideration of Rs 3,250 crore. This strategic move is expected to have a significant impact on Sheela Foam, nearly doubling its current market share.

With this acquisition, Sheela Foam's market share in India's organized mattress segment is projected to increase from 20-25 percent to 35-40 percent. The deal brings together the strengths of both companies, as Sheela Foam has a strong presence in the northern and western regions, while Kurlon is well-established in the southern and eastern regions. Consequently, the acquisition will result in an expanded presence for Sheela Foam across the entire Indian market, leading to potential cost savings in operations.

Moreover, the combined buying capacity of TDI (the parent company of Sheela Foam) for both itself and Kurlon will be significantly enhanced. This increased buying capacity will provide them with a competitive advantage in negotiations and obtaining better discounts compared to other players in the industry.

Overall, this acquisition positions Sheela Foam as a dominant force in the organized mattress sector in India and sets the stage for further growth and success in the industry.

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