New Delhi, Jan 23 (PTI) Duroflex, the IPO-bound sleep and comfort solutions company, is strengthening its presence in northern and western markets with a multi-brand strategy as part of its expansion plan, according to its Chairman and Managing Director, Jacob George.
Besides its traditional pillows and mattresses business, the Karnataka-based company is also expanding into adjacent categories, including recliners, sofas, smart beds, and upholstered beds, he added.
The brand, which has a retail network of 73 company-owned company-operated (COCO) stores and over 5,500 trade stores, has come up with a new 'AirBoost' technology, which has an air-filament architecture. Built on an Airknit fibre matrix comprising 90 per cent air, the AirBoost mattress range features over one lakh independent micro-support points that adapt continuously to body movement.
Duroflex is working to expand its market share in the north and west regions, moving beyond the southern region, which is a traditional stronghold. To boost a pan-India expansion and capacity, it had acquired a plant in Indore in Madhya Pradesh, to serve the west and north Indian markets.
"We did that during the peak of lockdown. We acquired a plant in Indore to cater for western and central India and up to Delhi NCR for the northern markets, and that's done really well. Those plants are doing really well, and those are world-class facilities," George said, adding that these are compatible with any global factories announcements.
Still, the Southern market dominates Duroflex revenue, contributing close to 65 per cent of its topline.
"We see a huge growth opportunity outside of South, which we just recently entered, and that's about 30-35 per cent of revenue," he said.
Duroflex is also looking at the premium opportunity in the segment, which is also having a higher growth rate on a small base.
Targeting the 'many India' market, Duroflex is working on a multi-brand strategy, targeting opportunities in every segment based on price points.
"The market is segmented based on price points. So, at an economic level in the South, we have Perfect Rest. In the mid-premium, premium segment, we have brand Duroflex. Then in the Super premium segment, we have products like Wave and Neuma," he said.
The advantage of having a House of brands is that a company don't need to dilute the equity of any brand, said George, who was elevated as Chairman and Managing Director of the company a couple of months back.
"Duroflex can continue to play in the mid-premium, premium space, and I do not need to get into the economy space. So, we are very uniquely positioned to actually address a wider audience," he said.
Through its house of brands, which includes - Perfect Rest, Duroflex, Sleepyhead and Neuma - the company is innovating in categories with a right to win. It has also helped it to enhance its EBITDA and face competition from large rival brands to smaller brands, along with local competition and organised players.
"In terms of profitability in the last three years, from 2023 to 2025, our EBITDA margin has gone up from Rs 57-58 crore to close to Rs 98 crore," he said.
Duroflex had filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) last October, with plans to raise funds through an initial public offering (IPO).
The company plans to utilise the proceeds from the fresh issue towards setting up 120 new COCO stores, meeting lease, sub-lease rent, and license fee obligations for existing COCO stores and the manufacturing facility, funding marketing and advertising initiatives to enhance brand visibility, and for general corporate purposes.
Founded in 1963, Duroflex is among the top three mattress companies in India by market share, and operates across mattresses, foam, furniture, pillows, accessories, and other bedding products under brands such as Duroflex, Sleepyhead, and Perfect Rest.