How mattress industry is evolving in India? According to you, what are the factors propelling growth in this segment?
Today sleep is next to fitness and it is catching up its due importance. In the recent past lot of developments took place within the industry in terms of new technologies and innovations – be it memory foam, Green Gel foam and coir etc. which are bouncing back to its past glory, however, Spring Mattresses are losing its share in the market gradually. Though, awareness is still an issue when it comes to the selection of mattresses, but the increasing purchasing power of Indian consumers as well as more exposure due to international travels, people are aspiring to have high-end and new age mattresses which ensure the right spine & back support offering a perfect sleeping experience.
Consumer demand is also tilting towards mattresses made from eco-friendly materials like rubberized coir, chemical free upholstery, etc. Another trend is customized mattresses from the dimensions which people ask based on their bed’s size and layering perspective. In recent times lot of technologies are evolving. For mattress three basic components are Coir/foam/spring, along with these various supporting components/combinations are taking momentum and every company has their own formulas or technology with which they are making mattresses.
Kindly shed light on the journey of Centuary Mattresses in Indian market so far. What kind of market share you enjoy in this segment.
Established in 1988, Centuary Fibre Plates was founded by Late Mr. Bhagwandas Malani & his son Mr. Purshottam Malani. The company had initially started-off as an OEM of rubberized coir for a then popular mattress brand called “Rilaxon”. By early 1990s, the company launched its own brand and called it ‘Centuary Mattresses’, which later became a household name in South and Central India. Three decades old, Centuary Mattresses is one of the leaders in bedding solutions and offers variety with comfort and currently features in the top 3 players in the Indian mattress industry. Over the years, Centuary Mattresses has grown from a single plant to 3 plants in the country – 2 in Telangana and 1 in Orissa.
The Indian Comfort and Bedding industry is currently pegged at INR 7,500 crores and two-thirds of this is dominated by the unorganized players. Centuary Mattresses has a 15% market share in organized business.
Kindly shed on your export business. What is the share of revenue generated from this segment?
Since a decade, Centuary Mattresses has been exporting mattresses and baby sleep-related product to Middle East and Europe region. The exports contribute around 3% to the company’s overall revenues.
Kindly shed light on your current distribution in the online as well as offline space. Going forward what are the plans to ramp up the distribution. Also, shed light on your franchise expansion?
At the start of this fiscal, the contribution of ecommerce to our overall sales was at 3%, however, as of now its contribution has increased to 5%. We are aiming to enhance it to 10% over next3 year. As of now, Centuary brand mattresses can be bought online on our website - and other ecommerce platforms like Flipkart, Amazon, Pepperfry.
The major contribution to our revenue comes from offline sales in India at 92%. Our Mobile App ‘Mattsapp’ -which will improve the ‘Sales Closing Rate’ and facilitate ‘Upselling’ to more premium products and price points.
Centuary Mattresses are available through our 3,500+ dealers and 250+ Exclusive Brand Outlets (EBOs). The company is aiming to increase it to 5000+ dealer/distributors/Stockists and 400+ Exclusive Brand Outlets by the year 2020. In Telangana and Andhra Pradesh, we have 1000+ dealer/distributors/Stockists and 100+ Exclusive Brand Outlets. Around 30% of our offline sales is through EBOs.
At last, kindly highlight your growth plans.
Since some years, Centuary Mattresses is consistently growing at a CAGR of 18-19 %, which is much higher than the market average of 10-11 %. The company is targeting 25%-30% revenue growth in line with its vision of becoming Number 1 player in Comfort & Bedding Industry in the Country.