kurlon Limited

ABOUT KURLON LIMITED UNLISTED SHARE

KURLON LIMITED was first established as Karnataka Coir Products Limited in 1962. The name was later changed to KURL-ON LIMITED in 1995 to fully reflect its diversified business activities. The company manufactures mattresses in 126 different configurations. Apart from a wide range of mattresses, the company also manufactures and markets an entire range of home comfort solutions and a wide range of high-end soft furnishings such as pillows, cushions, bed linen, ergonomically designed furniture, furnishing, etc.

Kurlon Limited was the first company to introduce rubberized coir mattresses in 1965 using the know-how from Austria. The company is known as the innovator of Coir Mattresses in India. The company not only serves retail consumers but also institutional clients like Hotels, Hospitals, and Hostels. Products of the company are exported to various Asian countries.

Kurlon Limited is the Holding company of Kurlon Enterprises Limited. Consequent to the business transfer agreement between Kurlon Limited and Kurlon Enterprises Limited, the business of Rubberized coir, latex foam, polyurethane foam, pillows, spring mattresses, furniture, furnishing, and related products were transferred to Kurlon Enterprises Limited with effect from April 2014. So, Kurlon Enterprises Limited is the operating company now.

Today, the company is the largest manufacturer of rubberized coir mattresses. The company is now working with a network of more than 10,000 dealers, 72 branches and stock points, and 9 manufacturing facilities across Orissa, Karnataka, Madhya Pradesh, Gujarat, and Uttaranchal.

INCORPORATION DETAILS

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

BOARD OF DIRECTORS

Mr. T. Sudhakar Pai (Managing Director)

Mrs. Jaya S. Pai (Director)

Dr. Nitin G. Khot (Independent Director)

Mr. S. Ananthnarayanan (Independent Director)

Mrs. Jyothi Ashish Pradhan (Director)

Mrs. Deepa Pai (Director)

Mr. Narendra Kudva (Alternate Director)

Mr. N. Srinivasa Ulloor (Chief Financial Officer)

Mr. Monu Kumar (Company Secretary)

PARTICULARS OF SUBSIDIARY COMPANIES

KURLON LIMITED UNLISTED SHARE DETAILS

SHAREHOLDING PATTERN

(As on 31-03-2020)

INDUSTRY OUTLOOK

India's overall mattress market has grown at a CAGR of above 11% over the last five years. The rise in income levels, health consciousness, and growth in the real estate and hospitality sectors are major factors that accelerated the growth of the Indian mattress market. A visible shift has been observed in the consumer’s perspective, where the main focus now is on the comfort and functionality of the product.

Several new trends are expected in the mattress industry during the coming years. The demand for customized and luxury mattresses is expected to increase significantly. Mattresses are no longer considered as mere consumer durables, they are an indicator of the quality of life.

Demand in both residential and institutional sectors is expected to grow in India. Among various sizes available, king-size mattresses are the most preferred ones, and comfort and durability are the most important factors for dominance in the market.

The Online segment is now a key focus for mattresses manufacturing companies. With COVID 19 pandemic, this segment has attained great significance and its potential has multiplied. With Work From Home expected to be the new normal and more people spending greater time at home, it is expected that the demand for the products used at home would go up especially in the Mattress and furniture space.

The unorganized sector has a major share in the Indian mattress market. This sector includes a street-side shop and the local ginner. However, the organized sector is now growing, with the increasing demand for good-quality mattresses among Indian consumers.

Growing residential units are creating a demand for mattresses all over the country. Additionally, every new hotel requires hundreds of beds and mattresses, and this particular industry appears to be thriving, owing to growth in the construction, real estate, and tourism, and hospitality sectors.

PROFIT & LOSS STATEMENT OF KURLON LIMITED (In Rs. Lakhs)

BALANCE SHEET OF KURLON LIMITED (In Rs. Lakhs)

DIVIDEND HISTORY

PERFORMANCE OF THE COMPANY

Revenue from Operations of the company decreased by 6.06% from Rs. 1,02,379.64 lakhs in FY 2019 to Rs. 96,173.05 lakhs in FY 2020.

Despite the decrease in revenue from operations, the EBITDA of the company increased by 6.98% from Rs. 12,386.27 lakhs in FY 2019 to Rs. 13,251.27 lakhs in FY 2020. EBITDA margins of the company improved from 12.10% in FY 2019 to 13.78% in FY 2020.

Borrowings of the company decreased by 9.49% from Rs. 3,019.40 lakhs as of 31st March 2019 to Rs. 2,732.96 lakhs as of 31st March 2020. However, due to significant lease liabilities, Finance cost to the company increased by 37.4% from Rs. 766.71 lakhs in FY 2019 to Rs. 1,053.85 lakhs in FY 2020.

Profit after tax of the company increased slightly from Rs. 7,495.96 lakhs in FY 2019 to Rs. 7,565.91 lakhs in FY 2020.

The current Ratio of the company as of 31st March 2020 was 2.24. The company is managing its financial liquidity effectively and efficiently.

The debt to Equity ratio of the company as of 31st March 2020 was 0.04