Mattress maker Prime Comfort Products today said it would invest up to Rs 200 crore in the next three years to set up new plants and brand building.
The company, which became operational last year, said it expected to achieve a turnover of Rs 450 crore in the next three years on the back of new products and enhanced capacity during the period.
"In the next three years, our total investment will be around Rs 100 crore to Rs 200 crore. This is will go on our capacity expansion, product development and other marketing initiatives," Prime Comfort Products Managing Director Praduman Patel said.
The city-based firm is planning to set up two more plants across the country in the next three years. While one of them will be set up in Gujarat and is expected to be operational by 2012, the company is planning to build another facility in South India.
"In the next three years, we want to have three plants across the country. We have started looking for land. One of them will come up in Gujarat and shall be operational by September next year," he said.
The company is planning to set up the third plant in South India, most probably near Hyderabad, he said but did not provide the timeline.
At present, the company has one facility at Greater Noida and has a capacity of making 10,000 tonnes of foam annually. It has already made an investment of Rs 50 crore on the plant.
The firm plans to fund the investment through debt and internal accruals. However, the company said it would look for an IPO or foreign collaborations after two years when its business has stabilised.
"At present our focus is on building the brand and enhancing the distribution. We want our products to be available in around 3,000 outlets in next three years. At present, we around 1,000 dealers," Patel said.
According to the firm, the Indian mattress market is estimated to be around Rs 5,000-6,000 crore and is dominated by brands like Sleepwell and Kurl-On.
"We have to achieve a turonver of around Rs 450 crore to be among the top three players in the sector. We expect that as we expand our capacity and business we will be able to achieve that in next three years," Patel said.
The company expects to close the fiscal with a turnover of Rs 80 crore on back of its new product range launched under the brand name 'Refresh'.
