Slides
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Investor Presentation SHEELA FOAM LIMITED
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Index > Board & Management > Company Overview > Business Overview > New age businesses > Kurlon Integration > ESG & CSR > Industry Overview > Business – Value & Volumes > Financials > Value Proposition
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Board & Management
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Board of Directors Rahul Gautam Executive Chairman Namita Gautam Whole Time Director Tushaar Gautam Managing Director Rakesh Chahar Deputy MD
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Independent Directors Som Mittal Ravinder Dhariwal Lt Gen (Dr). Vijay Kumar Ahluwalia Anil Tandon Meena Jagtiani Diversified Board
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Key Management Amit Kumar Gupta Group CFO Manoj Sharma CSO Shaili Tyagi CHRO Experienced Management with domain expertise Pertisth Mankotia CIO Puneet Gulati CMO
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Company Overview
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Pan India Presence with Footprint in Australia & Europe Kala Amb (HP) Surajpur (UP) Sahibabad (UP) Greater Noida (UP) Silvassa (D&N Haveli) Talwada (Gujarat) Hyderabad (Telangana) Erode (Tamil Nadu) Jalpaiguri (WB)Gwalior Bhubaneshwar Bangalore Nandigram Jabalpur PU Foam Manufacturing PU Foam Processing India: Mfg. Units : 12 Capacity: 1,39,000 MT Australia : Mfg. Units : 6 Capacity: 17,000 MT Spain: Mfg. Units : 1 Capacity: 22,000 MT
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Established in 1971 Sleepwell Foundation focusing on rural community upliftment ~30% market share – India 40% market Share - Australia Sleepwell’ & ‘Kurlon’ - Most trusted brands in India 125+ distributors 6,000+ Exclusive brand outlets 11,000+ Touchpoints 1.7L+ Tn – Annual Foam Capacities Global Presence with 19 manufacturing facilities Largest manufacturers of Foam and Mattress in India ESG focused with pre defined goals Free cash flow generating business Company Snapshot Australia – Joyce Foam Spain - Interplasp New Age Businesses 1. Furniture rental - Furlenco 2. IT solutions - Staqo Well positioned to capture growing consumer market of India
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Extensive Pan India Sales and Distribution Network Deeply penetrated, IT enabled and efficient distribution network 11000+ 6000+ 125+ 11
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Business Overview
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Technical Foam For usage in industries like Automotive, foot-ware, acoustics, clothing etc. Furniture Foam Specialized cushioning for utility in wide range of sitting comforts Comfort Foam and Home Care Products Foam Sheets & Blocks, Pillows, Bedsheets, Comforters/Blankets, Mattress Protectors and other allied products 19% 9% Revenue breakup as on 9M-FY25 India’s Leading Sleep & Comfort Brands Mattress Foam Business Diversified portfolio across mattresses, cushioning, and technical foam solutions supported by technological innovation Acquired by Sheela Foam in 2023, the brand commands strong resonance in Southern and Eastern India focusing primarily in rubberized coir mattresses Increased focus on mattress business to capture India’s consumption story
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19% 9% Revenue breakup as on 9M-FY25 International Presence – Australia & Spain 100% owned Australian subsidiary acquired in 2005 State-of-the-art production centers at Adelaide, Canberra, Melbourne, Brisbane, Perth and Sydney Manufactures foam for branded comfort product makers Stable, Self-sustaining, and Free cashflow generating 17,000 MTPA 22,000 MTPA ~94% owned Spanish subsidiary acquired in 2019 with focus on expanding operations to meet the demand from Europe and US Manufacturing facility at Yecla in Spain European flexible polyurethane foam manufacturers with focus on a strong technological and innovation base
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19% 9% Revenue breakup as on 9M-FY25 Business – by geography Share of domestic business consistently increasing - capturing vast & untapped potential 70% 70% 71% 75% 79% 30% 30% 29% 25% 21% 2021 2022 2023 2024 2025 India International
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New Age Businesses
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New Age Business | Furlenco – online furniture rental platform • Furlenco enjoys an early mover advantage in online furniture rental market due to strong millennial appeal, robust funding & investor backing. SFL currently holds 45.5% stake with majority board voting rights • Niche business due to capital intensive, large gestation period, and high entry barriers, Currently operating in more than 30 cities • Furlenco is a self cash generation business and has been PBT positive since Feb’24. Operating as a full-stack furniture designing, manufacturing, rental and selling platform, Furlenco is poised for accelerated growth
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New Age Business | Staqo – IT platform & services • 100% subsidiary of SFL, established in 2019 • Providing spectrum of digital, automation, and workflow optimization solutions to manufacturing, retail and MSMEs • Serving over 300+ client and managing more than 200 projects across 6 locations worldwide Inhouse capabilities nurtured into high growth vertical
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Kurlon Integration in SFL a case study
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KEL Integration turnaround 6.7% KEL EBITDA FY23 9.2% SFL EBITDA FY23 11.1% SFL + KEL CORE EBITDA Q1FY26
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SFL | ESG & CSR Initiatives
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Framework Environment Social Governance
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Initiatives
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Initiatives
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Industry Overview
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• Indian modern mattress market is estimated at ~INR 145-160 bn in 2024 and is projected to grow by 10%-12% to ~INR 270-300 bn by 2030 • Organized (branded) segment is projected to grow from ~30% (2024) to ~45% (2030) depicting a CAGR of ~18%-20% • The growth in premium & luxury segment is estimated to be higher than those projected in mass and masstige segments driven by higher disposable incomes, rising aspirations, and increase in health awareness. • Other Key factors driving market growth & shift to organised ✓ E-commerce & omnichannel expansion - reduce discovery friction and enable higher conversions ✓ Urbanisation & rising disposable incomes - more households upgrading from basic to branded mattresses ✓ Product innovation & warranties - fixed-term warranties, white-glove delivery encourage buyers toward organised brands ✓ Rising sleep-health awareness & premiumisation - consumers treat mattresses as health/product investment ✓ Institutional & hospitality demand - organised suppliers win larger institutional contracts (hotels, hospitals) supporting scale ~100 145-160 270-300 2019 2024 2030 (P) 20% 30% 45% 80% 70% 55% 2019 2024 2030 (P) Organized Unorganized Indian Mattress Market SplitIndian Modern Mattress Market (INR Bn) Industry Fundamentals Indian Mattress Market By Price Type 74% 72% 66% 18% 20% 23% 6% 6% 8% 2% 2% 3% 2019 2024 2030 (P) Mass Masstige Premium Luxury Mass - under ₹ 8K; Masstige - between ₹ 8-20K Premium - between ₹ 20-50K; Luxury over ₹ 50K Source: Redseer
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Business - Value and Volume
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2,100 2,150 2,034 2,174 3,308 2021 2022 2023 2024 2025 19% 9% Revenue breakup as on 9M-FY25 Volume Growth strong brand resonance demonstrating robust volume 901 1,158 1,048 1,071 1,181 2021 2022 2023 2024 2025 Mattress (‘000) Foam Business (Tn)
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34,949 42,387 33,660 42,292 45,988 2021 2022 2023 2024 2025 19% 9% Revenue breakup as on 9M-FY25 Value Growth Mattress (Rs Cr) Foam Business (Rs Cr) Premiumization leading to higher growth in mattress topline 711 829 874 1,053 1,377 2021 2022 2023 2024 2025
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Financials
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2,053 2,355 2,866 2,873 2,982 3,439 FY20 FY21 FY22 FY23 FY24 FY25 Revenues (INR Cr) 300 364 315 297 301 286 14.63% 15.46% 10.99% 10.35% 10.10% 8.30% FY20 FY21 FY22 FY23 FY24 FY25^ EBITDA (INR Cr) and EBITDA Margins (%) 194 240 219 203 184 97 9.46% 10.20% 7.63% 7.07% 6.17% 2.80% FY20 FY21 FY22 FY23 FY24 FY25 PAT (INR Cr) and PAT Margins (%) Consolidated Historical Financial Performance *^EBITDA includes INR 35 crs paid by KCPL (erstwhile owner of KEL) against working capital / inventory due to quality issues, classified under ‘other income’ in financial statements Margins and PAT impacted due to Kurlon integration
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926 1,193 1,400 1,609 2,981 3,096 FY20 FY21 FY22 FY23 FY24 FY25 Net worth (INR Cr) 0.16 0.12 0.21 (0.21) 0.24 0.23 FY20 FY21 FY22 FY23 FY24 FY25 Net Debt to Equity Ratio (x) 21.0% 20.1% 15.6% 13.3% 6.08% 3.40% 19.2% 19.4% 12.9% 14.8% 7.9% 5.8% FY20 FY21 FY22 FY23 FY24 FY25 ROE ROCE ROE and ROCE (%) Consolidated Historical Financial Performance RoE and ROCE lower due to Kurlon integration
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SFL | Value proposition
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Value Proposition Fifty years track record with second generation leadership in place Diversified board advising professional management Proven track record of successfully integrating acquisitions Leading brands with market uno position with consistent market share growth Proxy to India’s consumption story ESG focused with upliftment of underprivileged rural habitants Strong Free cash flow generating business
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Sheela Foam: Safe Harbour Statement All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates, and projections about our industry, management's beliefs, and certain assumptions made by us. Although Sheela Foam Limited (SFL) believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and SFL undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. No assurance can be given that actual results, performance, or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.
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Thank you For further information, please visit www.Sheelafoam.com or contact: Investor Relations Outreach | Mr . Nikunj Jain – nikunj.jain@sheelafoam.com (7838025553) Media | Mr . Ajay Pandey - ajay.pandey@sheelafoam.com (9015670673) Company Secretary | Mr . Iquebal Ahmad - iquebal.ahmad@sheelafoam.com (9717096729)