Industry Structure and Development

Among mattresses, rubberized coir and foam mattresses have the large share of the
market. Currently, the global annual production of coir fiber is about 350000 metric tons,
out of which 90% is produced in India & Srilanka though underutilized. Traditional uses
for the resilient and durable coir fiber include rope and twine, brooms and brushes,
doormats, rugs, mattresses and other upholstery, often in the form of rubberized coir
pads. In the1980s and 90s, global exports of coir fiber fell by almost half, as western
consumers shifted to synthetic foam and fibers. They exports from this industry are
around Rs. 70 Crores. Coconut husk is used is the basic raw material for coir products.
As regards, foam mattresses, the most important ingredient for the production of the same
is POLYOL+ ISOCYANATE+ CATALYSTS+ SURFACTANTS+ BOWLING
AGENTS = POLYURETHANE FOAM. Chemicals are being imported and easily
available in the market. Depending on the type of Poyol and Isocyanate used the
generated foam exhibits different properties vis-à-vis different types of mattresses. India
will consume 1 kg of Polyurethane (PU) per capita by 2020 at 1200000 tpa. Current per
capita consumption in India is about 200 grams. In the last few years PU has grown at
over 15% annum, and is expected to continue to be robust at an average rate of 15%. PU
consumption in2012 could reach more than 350,000 tons and could possibly touch
400,000 tons.
India has a population of over one billion people, of which it is estimated less than 10%
sleeps on afoam based mattress. Hence there exists a good growth potential growth for
PU foams in India. However, the dominance of natural bedding products, at times
subsidized or protected by import duties on substitute materials, has also hindered the
market penetration of PU foams at times. The Indian bedding market is substantial and
dominated by low cost coir (coconut fibre), latex and cotton mattresses, but people are
increasingly looking to upgrade to higher quality products made from or incorporating
PU foam.

Foam Mattresses

Total market size of foam mattresses in India is around 300 crores per annum. 30 crores
is MM foam with Rubber foam. Other local players in Rubber foam sell around 200
crores. Balance is PU FOAM mattresses. Major market is unorganized and foam sheets
getting converted to mattresses at dealer counter. Huge institutional demand for foam
mattresses with Rexene in Hospital segment and Rexene is stitched locally. Major player
in branded segment of PU Foam mattresses is M/s Sleepwell with turnover of around 50
crores per annum.

Furniture & Furnishing

The furniture industry in India is considered as a “non-organized” sector, with handicraft

production accounts for about 85% of the furniture production in India. The furniture
sector in India only makes a marginal contribution to the formation of GDP, representing
just a small percentage (about 0.5%). As per the quick estimates of Index of industrial
Production and Use-based Index for the month of April, 2010, the industry group ‘Wood
& Wood Products; Furnitures & Fixtures’ have shown a negative growth of 16.6% which
gives us further opportunity to expand ourselves into this extreme too.

Key Success factors

• Expanding into furniture and furnishing industry which has vast scope of growth
in Indian market
• Manufacturing all types and ranges of Mattresses
• Coming out with Kurlon nests which provide all furnishing and furniture items,
all types of mattresses under one roof

Competitors:

Duroflex, Century Foam, Coiron, Sheela Group (Sleepwell), Sulfex and Relaxon