Lighthouse Fund, India's leading consumer-focused private equity fund, has invested INR 160 crore (USD 22 million) in Duroflex Private Limited, a dominant mattress player in South India. The Company has five manufacturing facilities located in Tamil Nadu, Telangana and Kerala which manufacture a wide range of mattresses and PU foam products. The Duroflex brand is well known for providing innovative and good quality products. The Company offers a wide array of products under sub-brands such as Energise, Duropedic and Natural Living addressing the needs of specific consumer groups. The Company has a robust distribution network across South India, selling at more than 3,000 retail outlets, and is in the process of expanding its footprint in West and East India. The Company is expecting a turnover of over 450 crores in the current financial year.
The Company plans to utilize the money raised from Lighthouse to fund its expansion plans. The Company also plans to add over 500 exclusive business outlets (EBOs) in the near future. ICICI Securities acted as the sole financial advisor to the Company for the fund raise.
Commenting on the Lighthouse investment into the Company, Mr. Mathew Chandy, Managing Director of the Company said "We are very excited to have Lighthouse as partner in our growth journey given their impressive track record of investments in over twenty-five brands. We look forward to their support and guidance as we expand into new markets and try new business strategies. We have been able to build a strong brand in South India on the back of consistent quality and would want to multiply efforts to replicate similar success in our new markets."
Mr. Sachin Bhartiya, Partner at Lighthouse, added, "We are pleased to become a partner in Duroflex and help them in their journey as they grow to the next level. We really appreciate various initiatives undertaken by the management to increase the market share led by product innovations and new launches over the last few years. We are very excited by the growth opportunity ahead of the Company."
Lighthouse is a leading mid-market private equity firm focused on growth investments in India's consumer sector. The firm's current and past investments include Nykaa.com, Bikaji Foods, FabIndia, Cera Sanitaryware, Capital Trust, Tynor Orthotics, Suraksha Diagnostic, Dhanuka Agritech, Indian Herbs, Kama Ayurveda, Unibic Foods, V2 Retail and XSEED Education. For more information, please visit www.lhfunds.com