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.

Sheela Foam Limited , a leading manufacturer of foam-based products, has reported mixed financial results for the quarter ended September 30, 2025.

Financial Performance

Revenue

Sheela Foam's consolidated revenue from operations for the quarter stood at ₹874.94 crore. On a standalone basis, the company reported revenue from operations of ₹566.60 crore, slightly down from ₹574.75 crore in the previous quarter.

Profit

The company's consolidated profit after tax for the quarter was ₹9.96 crore. On a standalone basis, profit after tax declined to ₹5.65 crore from ₹10.70 crore in the previous quarter, representing a decrease of approximately 47.20%.

Exceptional Losses

Sheela Foam recorded exceptional losses of ₹7.84 crore due to the sale of certain land and buildings in Uttarakhand and Bangalore, which impacted the overall profitability for the quarter.

Corporate Developments

Amalgamation Scheme

The Board of Directors approved the amalgamation scheme of subsidiary Kurlon Enterprises Limited, which was sanctioned by the National Company Law Tribunal on September 17, 2025.

Financial Ratios

For the quarter, Sheela Foam reported the following key financial ratios:

These ratios indicate potential challenges in the company's short-term liquidity and debt servicing capacity.

Outlook

While Sheela Foam faces challenges in maintaining profitability, the approval of the amalgamation scheme with Kurlon Enterprises Limited may contribute to long-term growth and value creation for shareholders. The company's ability to improve its financial ratios and manage exceptional losses will be crucial for its future performance.