Real Innerspring Technologies Ltd. (RITL), the Indian licensee for global mattress brand King Koil, plans to invest Rs. 400 crores, for setting up of three new manufacturing plants in the next four-five years for expansion in the country.
“We plan to invest Rs. 400 crores in next 4-5 years in the whole eco-system, and majority of this would be in the production side. We would be setting up more factories,” RITL Managing Director Archit Gupta told PTI.
The Noida-based firm is scouting for location in South India to set up a plant to cater to the demand in the region. “We would establish one more plant in South India next year, preferably in Karnataka, to cater the regional demand there. It would be a major market for us,” he said.
The King Koil mattresses were earlier imported from Dubai. RITL currently produces mattress at three facilities located, in Mumbai, Noida and Rudrapur, which have a total capacity of one lakh mattresses per year.
Mr. Gupta further said the company would also invest in marketing and would look to sign a brand ambassador soon to endorse the King Koil range of mattresses.
RITL had entered into a long-term licence agreement for the Indian market with the US-based King Koil earlier this year. It has launched King Koil mattresses priced between Rs. 9,000 and Rs. 46,000 and is looking to scale up retail presence.
“We have plans to introduce the King Koil brand to 300 to 450 multi-brand outlets this year. Moreover, it would open 13 dedicated outlets this year. The company is targeting high-end mattress space and mid-segment markets, added Mr. Gupta.
According to him, the market size of the organised mattress sector is around Rs. 6,000 crores in India and the unorganised sector sells 10 times more than the branded products. Still, the Indian market is dominated largely by two big mattress brands – Sleepwell and Curlon.
King Koil is selling its product in 80 countries through licence agreements. In the US, the company is serving the demand with 10 licensees and over 70 additional licensees around the world.