Sheela Foam Limited , a leading manufacturer of foam products, has taken significant steps to implement a complex merger scheme involving multiple companies. The company's Board of Directors has constituted an Amalgamation Committee to oversee and execute a composite scheme of arrangement.

Merger Scheme Details

The scheme involves the merger of five companies into Kurlon Enterprise Limited, which will subsequently merge into Sheela Foam Limited. The companies to be merged are:

1. Belvedore International Limited
2. Kanvas Concepts Private Limited
3. Kurlon Retail Limited
4. Komfort Universe Products And Services Limited
5. Starship Value Chain and Manufacturing Private Limited

This multi-step merger process aims to consolidate operations and potentially streamline the company's structure.

Committee Formation and Authority

The newly formed Amalgamation Committee comprises members of the Board of Directors. It has been granted full authority to oversee, implement, and take all necessary actions related to the scheme's execution. This move demonstrates Sheela Foam's commitment to ensuring a smooth transition and effective implementation of the merger plan.

Regulatory Approval and Next Steps

The company has received approval for the scheme from the National Company Law Tribunal (NCLT), Mumbai Bench. Sheela Foam will inform the stock exchanges about the effective date of the scheme once the certified copy is filed with the Registrar of Companies.

Leadership Changes

In light of the merger, Sheela Foam has also announced changes to its top leadership:

• Mr. Rahul Gautam has been appointed as the Chairman and Managing Director of the company, effective immediately.
• Mr. Tushaar Gautam has been elevated to the position of Vice Chairman and Joint Managing Director.

These appointments are aimed at strengthening the operational leadership following the merger of Kurlon Enterprise Limited and its subsidiaries with Sheela Foam Limited.

Financial Performance

Sheela Foam reported the following consolidated financial results:

The company's performance reflects a challenging business environment, with a slight increase in revenue compared to the previous quarter but a decrease in profit.

Future Outlook

With the merger scheme in progress and new leadership in place, Sheela Foam appears to be positioning itself for potential growth and operational efficiencies. The company's ability to successfully integrate the merging entities and capitalize on potential synergies will be crucial for its future performance in the competitive foam and mattress market.

Sheela Foam Limited , the company behind the popular Sleepwell mattress brand, has announced a strategic investment of ₹30 crore in House Of Kieraya (HOK), which operates under the Furlenco brand. This move is set to bolster Sheela Foam's position in the furniture business and expand its market presence.

Investment Details

The board of directors of Sheela Foam has approved the investment, which will be made through a subscription to new equity shares of HOK. The details of the transaction are as follows:

Strategic Implications

This investment marks a significant step for Sheela Foam in diversifying its portfolio and strengthening its presence in the furniture sector. House Of Kieraya, known for its Furlenco brand, is a prominent player in the online furniture segment, operating in major cities including Bangalore, Mumbai, and Delhi NCR.

About House Of Kieraya (Furlenco)

• Founded in 2012 by Ajith Mohan Karimpana
• One of the fastest-growing furniture companies in India
• Tech-driven business model
• Turnover in recent years:
  • FY'23: ₹157.00 crore
  • FY'24: ₹152.00 crore
  • FY'25: ₹240.00 crore

Market Impact

The investment is expected to create synergies between Sheela Foam's manufacturing expertise and HOK's strong online presence in the furniture market. This collaboration could potentially lead to enhanced product offerings and expanded market reach for both companies.

Regulatory Compliance

The transaction is classified as a related party transaction but is being conducted on an "arm's length" basis, ensuring compliance with regulatory requirements. Sheela Foam has stated that no governmental or regulatory approvals are required for this acquisition.

Timeline

The company aims to complete the investment by November 30, 2025.

This strategic move by Sheela Foam reflects the company's ambition to expand its footprint in the furniture industry and capitalize on the growing online furniture market in India. Investors and industry observers will be keenly watching how this investment unfolds and impacts Sheela Foam's market position in the coming years.