Kochi, Nov 27 (PTI) Mattress maker Duroflex has set a target of doubling its turnover to Rs 1,000 crore by 2022-23 with the ongoing capacity expansion that will help widen its reach to the northern and western markets.

The company, in which private equity firm Light House invested Rs 160 crore two years ago for a 24 per cent stake, has the capacity to produce 7 lakh mattresses annually that will now cross 10 lakh with the new Rs 50-crore plant coming up in Indore, which is the largest mattress plant in the country producing 1,000 units a day.

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The 5-million units per annum branded mattress market is led by Sleepwell and Curlon and Duroflex is at the third spot. The market is vastly unorganised.

The Alappuzha, Kerala-based firm, which began operations in the early 1960s, currently has a plant in Hyderabad where mattresses are made and another plant in Devas near Indore where foams and other inputs are made.

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The 36,000-metric tonne per annum Devas plant also supplies materials to furniture makers like Ikea, contributing a third of its revenue which stood at Rs 500 crore in 2019-20, Mathew Chandy, managing director of Duroflex told PTI.

“We are confident of doubling our revenue to Rs 1,000 crore, over the next two years with our expansion and most of the new incremental revenue should come from the upcoming Indore plant. If our plans go as planned, we should be a Rs 2,000-crore entity by FY25,” Chandy said.

He added that the plan is to get an incremental Rs 500 crore revenue from the new plant alone on completion of the third phase over the next two years.

The brand's market presence is limited to 14 states now, with heavy leaning on the southern markets. The new plant should help us cover the northern and western markets as well, and our overall reach should be 18-19 markets soon, he said.

On the impact of the pandemic on his business, Chandy said surprisingly the lockdown has been good for us and the company should be closing the fiscal with at least 10 per cent more sales.

The expansion would also help it increase exports, which from a revenue perspective is only 5 per cent now. Currently, it has foreign buyers like Walmart and Ikea, he said, adding to Ikea, it sells both mattress and materials.

Over the next three-four years the company is looking at an export revenue of Rs 300-400 crore, he said.

On fund raising, he said Duroflex has always been profitable maintaining 10 per cent margins and for the current expansion it does not need any external fund. He also ruled out taking the family-run company public at any stage.

Duroflex uses German foaming technology and was the first to launch the country's first doctor recommended orthopedic mattress under the brand name 'Duropedic'.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)