Sheela Foam Limited has achieved a significant milestone in its corporate restructuring efforts. The National Company Law Tribunal (NCLT) Mumbai Bench has given its stamp of approval to a comprehensive Composite Scheme of Arrangement involving Sheela Foam and five other companies on September 17, 2025.

Scheme Details

The approved scheme encompasses a complex series of mergers:

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

These five entities will first amalgamate into Kurlon Enterprise Limited, which will subsequently merge into Sheela Foam Limited. This arrangement has been sanctioned under sections 230 to 232 of the Companies Act, 2013, covering the companies along with their respective shareholders and creditors.

Implementation Timeline

According to the company's disclosure to the stock exchanges, the scheme will become effective upon filing the certified copy of the NCLT order with the Registrar of Companies, Mumbai. Sheela Foam is currently awaiting the certified true copy of the order sanctioning the scheme.

Management's Communication

Md. Iquebal Ahmad, Company Secretary and Compliance Officer of Sheela Foam Limited, stated in the regulatory filing, "The pronouncement order of the Hon'ble NCLT is now available on its website at https://nclt.gov.in/ as of September 18, 2025, and also on the Company's website at https://www.sheelafoam.com/shareholder-information ."

Investor Engagement

In a separate announcement, Sheela Foam has also scheduled a series of investor and analyst meetings from September 23 to September 26, 2025. These meetings, a mix of in-person and online interactions, demonstrate the company's commitment to maintaining open lines of communication with its stakeholders during this transformative period.

Conclusion

This NCLT approval marks a crucial step in Sheela Foam's corporate restructuring strategy. The amalgamation is expected to streamline operations, potentially leading to improved efficiencies and synergies across the merged entities. Shareholders and market observers will be keenly watching how this consolidation impacts the company's future performance and market position in the foam and sleep products industry.

As the implementation of the scheme progresses, Sheela Foam Limited is likely to provide further updates to its shareholders and the market at large.

Sheela Foam Limited , a leading manufacturer of mattresses and foam products, reported a strong financial performance for the first quarter. The company's core EBITDA grew by 47% year-on-year to Rs 75.00 crores, compared to Rs 51.00 crores in the same quarter last year. EBITDA margins improved significantly to 11.7% from 8.4% in the previous year.

Key Highlights

• India business revenues reached Rs 644.00 crores, up 5% year-on-year.
• Mattress volumes grew by 10%, with Sleepwell brand growing 22% and Kurlon 6%.
• Gross margins improved to 43.5%, representing a 400 basis point increase from pre-acquisition levels.
• The company signed up 392 new showrooms in Q1, with 234 already operational.
• E-commerce business grew 66% year-on-year.

Kurlon Integration Benefits

Sheela Foam has realized Rs 190.00 crores in cost savings from the Kurlon integration, with an additional Rs 60.00 crores expected by the end of the fiscal year. The integration process, which took around 18 months, has yielded satisfying results, including:

1. Optimized channel network
2. Reduction of operating facilities from 21 to 12
3. Efficiencies in input material purchases
4. Improvement in logistics costs
5. Reduction in overhead costs

Expansion Plans

The company aims to open 1,000 new showrooms this fiscal year, focusing on expanding Kurlon's presence in northern and western markets. Currently, Sheela Foam has a strong network of almost 6,000 exclusive brand outlets and more than 20,000 touchpoints.

Small-Town Initiative

Sheela Foam's small-town initiative products, Tarang and Aaram, achieved 60% volume growth with an annual run rate of Rs 80.00 crores. The company is confident of achieving revenues of over Rs 100.00 crores from this value-driven initiative in the current fiscal year.

E-commerce Growth

The e-commerce segment continues to show strong growth, registering a value growth of 66% year-on-year. This segment generated a revenue of Rs 200.00 crores in the previous fiscal year, and the company expects a 50% value growth through this channel in the current fiscal year.

Furlenco Investment

Sheela Foam's investment in Furlenco, a furniture rental company, is showing promising results. Furlenco reported Rs 4.00 crores PAT in Q1 and plans to raise Rs 100.00-125.00 crores for expansion. The company aims to reach revenue levels of Rs 500.00-550.00 crores by FY27.

Outlook

Rahul Gautam, Executive Chairman of Sheela Foam, expressed optimism about the company's future performance, stating, "Q1 has been a robust performance. We look forward to it going or getting better and better as we move along."

The company expects to continue its growth trajectory, focusing on market share gains, expanding its retail presence, and leveraging synergies from the Kurlon acquisition. With a strong foundation laid in Q1, Sheela Foam appears well-positioned for sustained growth in the coming quarters.