Duroflex, a leading sleep and comfort solutions provider in India, has reported a revenue of Rs 1,057 crore in the fiscal year 2023, marking an 18.23% growth from the previous year. The Bengaluru-based company also managed to cut down its losses by 59.46% to Rs 15 crore in FY23, thanks to its effective cost mechanism and diversified product portfolio.
Duroflex rides on the wave of increased demand for branded mattresses
The Covid-19 pandemic has created a surge in demand for branded mattresses, as people became more aware of the importance of sleep hygiene and quality. Duroflex, which offers mattresses, furniture, bed linen, pillows, and accessories through its website, offline stores, and e-commerce marketplaces, has capitalized on this opportunity and expanded its customer base across the country.
Duroflex has seven manufacturing facilities in India, including the newly added plant in Indore, which caters to the northern and western markets. The company is also setting up a small manufacturing unit in Delhi to further strengthen its presence in the north. Duroflex produces rubberized coir, polyurethane foam items, and spring mattresses, which are popular among the urban and semi-urban consumers.
Duroflex diversifies its product portfolio and scales up its e-commerce trade
Duroflex has also diversified its product portfolio to cater to the different needs and preferences of its customers. The company has launched several innovative products, such as the anti-viral mattress range, which claims to eliminate 99.9% of viruses and bacteria on contact, and the carbon mattress range, which uses activated charcoal to absorb odors and toxins.
Duroflex has also scaled up its e-commerce trade, which accounts for 25% of its revenue. The company has partnered with major online platforms, such as Amazon, Flipkart, and Pepperfry, to reach out to the digital-savvy customers. Duroflex also has its own website, where customers can customize their mattresses and avail of free home trials.
Duroflex reduces its losses and improves its margins
Despite the modest growth in revenue, Duroflex has been able to reduce its losses significantly in FY23, owing to its effective cost management and improved margins. The company’s cost of procurement of materials, which is the largest expenditure, increased by only 11% to Rs 605 crore in FY23, while its employee benefits and other overheads grew by 29.3% and 14.73%, respectively.
Duroflex’s total expenditure stood at Rs 1,075 crore in FY23, resulting in a loss of Rs 15 crore. This is a remarkable improvement from the previous year, when the company posted a loss of Rs 37 crore. Duroflex’s return on capital employed (ROCE) and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin also improved by 3.3% and 5.4%, respectively.
Duroflex sets ambitious targets for the future
Duroflex is not resting on its laurels and has set ambitious targets for the future. The company aims to achieve a revenue of Rs 1,300 crore in FY24 and Rs 2,000 crore by 2025. The company also hopes to launch an initial public offering (IPO) in the next 3-4 years, as it seeks to raise funds for its expansion plans.
Duroflex also plans to increase the number of its company-owned and company-operated retail outlets across the country, from 10 in the beginning of FY23 to over 40 by September 2021. The company has also roped in Bollywood actress Alia Bhatt as its first ever brand ambassador, as it seeks to influence the youth and the millennial audience to understand the importance of sleep and mattresses.
Duroflex faces stiff competition from other players in the sleep and comfort solutions market, such as Wakefit, Sleepwell, Kurlon, and Peps. However, the company is confident of its product quality, innovation, and customer service, which give it an edge over its rivals.