From Rs.3 Lakh to Rs.1,057Cr: How Duroflex Redefined the Sleep Industry
Unveil the financial success of Duroflex: From overcoming early challenges to achieving over Rs 1,000 crore in revenue and effectively managing costs for profitability.
Duroflex, a renowned mattress brand in India, was founded in 1963 by PC Mathew in Alleppey, Kerala. Mathew's vision for sparked during a trip to Germany in the 1960s, where he discovered the potential of rubberised coir, commonly used in car seats, for mattress manufacturing. He began his venture with an investment of Rs 3 lakh, setting up the business in a peaceful setting along a canal in Alleppey.
Despite initial doubts about the Indian market's acceptance of coir mattresses, Mathew was determined. He imported mattress manufacturing machines from Austria, overcoming challenges related to import restrictions in the 1960s by creatively reengineering the machines locally. The Indian government helped Duroflex gain a foothold in the market by ordering hospital beds, battle tank seats, and railway coach furnishings from the company.
Duroflex is now under the leadership of Mathew George, a third-generation entrepreneur. He has played a key role in adapting the company to modern market needs and diversifying its product range. In 2018, Duroflex strengthened its market position by securing a $22 million investment from Lighthouse Fund.
Today, Duroflex is a significant player in the sleep products category. The company offers a wide range of products including mattresses, furniture, bed linens, pillows, and accessories, endorsed by cricket star Virat Kohli. Duroflex sells its products through various channels, such as its website, offline stores, and online platforms like Amazon, Flipkart, and Pepperfry.
In terms of financial performance, Duroflex has shown impressive growth. For the fiscal year ending in March 2023 (FY23), the company's revenue increased by 18.23% to Rs 1,057 crore, up from Rs 894 crore in the previous fiscal year. This growth came after a significant 58% increase in FY22. The company's total expenditure also rose to Rs 1,075 crore in FY23, a 14.73% increase from Rs 937 crore in FY22. Material procurement was the largest part of this expenditure, making up 56% of the total costs reports Entrackr.
Despite the rise in expenses, Duroflex successfully reduced its losses by 59.46%, decreasing them to Rs 15 crore in FY23 from Rs 37 crore in FY22. This financial achievement highlights Duroflex's effective cost management and its ability to balance growth with profitability, cementing its status in the sleep solutions market.