KURLON ENTERPRISE LIMITED UNLISTED SHARE
About Kurlon Enterprise Limited
Kurlon Enterprise Limited was established in 2011. It is a subsidiary company of Kurlon Limited. Kurlon Limited is the innovator of coir mattresses in India and it offers a wide range of comfort solutions for retail as well as institutional clients.
When Kurlon Enterprise was created, A business agreement between Kurlon Enterprise Limited and Kurlon Limited was being done. According to the agreement, the business rubberized coir, latex foam, polyurethane foam, pillows, spring mattresses, furniture, furnishing, and related products were transferred to Kurlon Enterprise Limited with effect from 1st April 2014.
Kurlon Enterprise Limited is now the operating company. It is headquartered in Bengaluru. The company is now manufacturing mattresses in 126 different configurations. Kurlon Enterprise Limited boasts its network of more than 10,000 dealers, 72 branches, and stock points across India. The company also has 12 manufacturing facilities across Karnataka, Orissa, Madhya Pradesh, Uttaranchal, and Gujarat. Every minute, about 5 homes in India buy a Kurlon Mattress.
In FY 2019-2020, Kurlon Enterprise Limited added some new products to their portfolio which include Wedding Series Mattresses, Sleepace sleep tracker, and a wide range of pillows. The company has also recently completed the merger with Spring Air Bedding Company (India) Limited, through which the company has added some international brands to its portfolio.
INCORPORATION DETAILS
CIN | U36101MH2011PLC222657 |
Registration Date | 13 October 2011 |
Category / Sub-Category of the Company | Company Limited by Shares |
Address of the Registered office and contact details | #1002/1006, The Avenue, International Airport Road, Opp. Hotel Leela, Andheri(East), Mumbai-400059 |
Name, Address and Contact details of Registrar and Transfer Agent, if any | Purva Sharegistry (India) Private Limited Ms. Purva Shah 9, Shiv Shakti Ind. Estt. J.R. Boricha Marg, Lower Parel(E), Mumbai-400011 +91-022-2301-6761/2518 support@purvashare.com |
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
Name of the Company | Holding/Subsidiary/Associate | % of shares held |
Kurlon Limited | Holding Company | 85.06 |
Kurlon Retail Limited | Wholly owned Subsidiary | 100 |
Sevalal Solar (P) Limited | Subsidiary | 69 |
Sirar Solar Energies (P) Limited | Subsidiary | 69 |
Sirar Dhotre Solar (P) Limited | Subsidiary | 69 |
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)
Mr. Vishal Tulsyan (Nominee Director)
Mr. Ritesh Shroff (Chief Financial Officer)
Mr. Monu Kumar (Company Secretary)
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Mattresses/Pillows/Foam/Sofa & furniture | 31005 | 97.18% |
KURLON ENTERPRISE LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 3,63,82,393 |
Face Value: | Rs. 5 Per Equity Share |
ISIN: | INE387W01025 |
PAN No. | AAECK5045N |
Lot Size: | 100 |
Last Traded Price: | Rs. 700 |
Market Cap: | Rs. 2546.77 Crore |
SHAREHOLDING PATTERN
As on 31-03-2020
S. No. | Shareholders’ Name | No. of Shares | % of total Shares of the company |
1 | Mrs Jaya S Pai | 347 | 0.00 |
2 | Mr. T Sudhakar Pai | 347 | 0.00 |
3 | Kurlon Limited | 3,09,46,755 | 85.06 |
4 | Public Shareholding | 54,34,944 | 14.94 |
| Total | 3,63,82,393 | 100.00 |
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.
KEY FINANCIALS OF KURLON ENTERPRISE LIMITED (In Rs. Lakhs)
Particulars | 2020 | 2019 | 2018 | 2017 |
Revenue from operations | 98,763.14 | 1,05,191.40 | 1,10,817.97 | 97,679.59 |
EBITDA | 12,790.30 | 12,793.80 | 13,760.34 | 10,294.77 |
EBITDA margin | 12.95% | 12.16% | 12.42% | 10.54% |
Finance Cost | 941.37 | 598.33 | 409.56 | 376.07 |
Depreciation | 3,330.45 | 1,896.45 | 1,438.96 | 1,211.10 |
Other Income | 793.38 | 1,196.23 | 1,244.69 | 437.2 |
Profit before Tax | 9,311.87 | 11,495.24 | 13,156.51 | 9,144.80 |
Tax | 1,787.34 | 4,890.30 | 4,741.16 | 3,065.77 |
Profit After Tax (PAT) | 7,524.53 | 6,604.94 | 8,415.35 | 6,079.03 |
PAT margin | 7.56% | 6.21% | 7.51% | 6.20% |
EPS | 20.78 | 18.5 | 30.23 | 27.04 |
BALANCE SHEET OF KURLON ENTERPRISE LIMITED (In Rs. Lakhs)
Particulars | 2020 | 2019 |
ASSETS | ||
NON CURRENT ASSETS | ||
Tangible Assets | 28,523.15 | 20,664.74 |
Intangible Assets | 2,646.66 | 2,742.67 |
Financial assets | 1,483.66 | 1,152.63 |
Trade receivables | 0 | 1.5 |
Tax Assets | 1,113.58 | 438.87 |
Other non-current assets | 1,511.85 | 2,800.81 |
TOTAL NON CURRENT ASSETS | 35,278.90 | 27,801.22 |
CURRENT ASSETS | ||
Inventories | 12,289.92 | 11,729.24 |
Financial assets | 11,511.78 | 3,783.68 |
Trade receivables | 6,705.36 | 11,961.18 |
Cash and Cash equivalents | 1,430.82 | 3,065.88 |
Other current assets | 7,465.01 | 7,480.70 |
TOTAL CURRENT ASSETS | 39,402.89 | 38,020.68 |
EQUITY AND LIABILITIES | ||
EQUITY | ||
Equity share capital | 1,819.12 | 1,819.12 |
Other Equity | 44,775.40 | 38,634.85 |
Non controlling interest | 13.86 | 0.00 |
TOTAL EQUITY | 46,608.38 | 40,453.97 |
LIABILITIES | ||
NON-CURRENT LIABILITIES | ||
Financial liabilities | 10,335.55 | 6,093.63 |
Provisions | 409.42 | 409.42 |
Tax liabilities | 1,619.79 | 2,252.10 |
TOTAL NON CURRENT LIABILITIES | 12,364.76 | 8,755.15 |
CURRENT LIABILITIES | ||
Financial liabilities | 3,120.50 | 2,287.50 |
Trade payables | 11,948.34 | 12,911.27 |
Provisions | 413.8 | 409.42 |
Tax liabilities | 0 | 0 |
Other current liabilities | 226.01 | 1004.59 |
TOTAL CURRENT LIABILITIES | 15,708.65 | 16,612.78 |
TOTAL EQUITY AND LIABILITIES | 74,681.79 | 65,821.90 |
DIVIDEND AND RETAINED EARNINGS
Particulars | 2020 | 2019 | 2018 | 2017 |
Dividend (In Rs.) | 3.5 | 3 | 2.5 | 2.5 |
Retained Earnings (Consolidated) (In Rs. Lakhs) | 28,563.17 | 22,044.18 | 16,149.21 | 9,264.84 |
KEY FINANCIALS OF SUBSIDIARIES OF KURLON ENTERPRISE LIMITED (In Rs. Lakhs)
Particulars | Kurlon Retail Limited | Sirar Solar Energies (P) Limited | Sirar Dhotre Solar (P) Limited | Sevalal Solar (P) Limited |
Total Assets | 6427.72 | 305.37 | 301.16 | 40.3 |
Share Capital | 763.33 | 1 | 1 | 1 |
Reserves and surplus | -587.2 | 22.36 | 21.67 | -2.31 |
Income from Operations | 4016.92 | 53.42 | 49.69 | 0 |
Profit After Tax | -654.88 | 14.97 | 10.41 | -1.81 |
PERFORMANCE OF THE COMPANY
Revenue from Operations, on a consolidated basis, decreased by 6.11% from Rs. 1,05,191.40 lakhs in FY 2019 to Rs. 98,763.14 lakhs in FY 2020. The decrease in revenue from operations is due to the impact of COVID-19during February/March 2020 and the subsequent lockdown during the last week of March 2020.
Despite low revenues, EBITDA has been stable for the company at Rs. 12,790.30 lakhs in FY 2020, as compared to Rs. 12,793.80 in FY 2019. Moreover, EBITDA margins have also been stable at 12.95% in FY 2020.
Consolidated Profit after Tax (PAT) increased by 13.9% in FY 2020 to Rs. 7,524.53 lakhs from Rs. 6,604.94 lakhs in FY 2019. That means PAT margins have improved by around 1.35% in FY 2020. Therefore despite less sales in FY 2020, the company has given an EPS of Rs. 20.78 to its shareholders, 12% increased from Rs. 18.5 in FY 2019.
The Current Ratio of the company for FY 2020 is 2.5. This means that the company has enough liquidity to pay all the current liabilities in the case of liquidation of the company. Therefore, it can be concluded that the company does not have any liquidity issues.
Kurlon Enterprise Limited has consistently and progressively given dividends to its shareholders. The company gave a dividend of Rs. 3.5 per equity share, in FY 2020, as against Rs. 3 per equity share in FY 2019.
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