Duroflex Pvt. Ltd. plans to achieve a turnover of ₹2,000 crore by FY25, according to Mathew Chandy, chief managing director.
“We were able to double our turnover to ₹1,000 crore during FY22, that too, during the pandemic period and a year ahead of schedule,” he told The Hindu.
“Our next goal is to achieve ₹2,000 crore turnover by FY25. We have already drawn a road map. This we will achieve through good growth, good profit, increasing footprint and digital initiatives,” he said.
While the industry grew by 11% last year, Duroflex posted 60% growth and is confident of ending FY23 with a CAGR of 30% to post ₹1,300 crore in turnover despite facing headwinds in the form of inflation, chip shortage and geopolitical situation. The company officials are working on the ways to mitigate them.
He also pointed out that Duroflex used the pandemic period effectively by setting up a new factory in Indore to cater to the growing needs of Northern and Central India and also established a furniture unit in Hosur and sleep accessories units in Hosur, Indore and Hyderabad. With this, Duroflex has eight facilities in the country to make mattresses, pillows and accessories, bed linen and furniture.
In the last two years, ₹100 crore has been invested to double the production capacity of the foam and mattress unit at Indore.
“We are no longer a Southern company, as more than 30% of revenue comes from other States. We also roped in Bollywood actress Alia Bhatt as national brand ambassador and that also boosted our sales,” he said.
On the capex, he said “we have already doubled our production capacity to two million units per annum. Currently, we are operating at 70%. So, the future needs are taken care of. Moreover, we had raised $60 million through Norwest Venture Partners last year.”
Duroflex would be investing ₹100 crore every year in maintenance, repair or replacement. Besides, investments would be made in digital transformation as e-commerce sales had grown from 2% to 30%. The number of experimental stories will be doubled to 100.
According to him, Duroflex would think of entering the capital market once it touches the coveted ₹2,000- crore sales mark.
Talking about the exports that accounts for almost 10% of total revenue, he said that there has been a slowdown in volume from U.S. and Europe. But, it was picking up.
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