Lord Swraj Paul's Caparo Group has teamed up with British companies Harrison Spinks and Wade Group to manufacture high-end luxury mattresses for the growing affluent populace in India.
The joint venture Caparo Spink Wade International Ltd will invest Rs 1,000 crore in setting up multi-location manufacturing facilities over the next five years. To begin with, the joint venture is setting up a high-end spring mattress manufacturing unit at Bawal on the Delhi-Jaipur highway in Haryana.
Stake share
Caparo India holds a 51 per cent stake in the venture while the remaining partners own 24.5 per cent each. The joint venture will also look at exporting luxury mattresses from India to West Asia and South-East Asia, said Mr Angad Paul, Chairman, Caparo Spink Wade International Ltd.
“We have come together to launch a world class product for discerning customers in India. The rapid development and modernisation in India brings exciting opportunities for the three companies,” Mr Paul said.
The Bawal facility, in which the company plans to invest about Rs 40 crore to begin with, will be operational over the next 9-12 months. “Initially, the company plans to import such mattresses from United Kingdom into the Indian market,” Mr Paul said, without disclosing the pricing of such products in India.
High-end players
Prices of such high-end luxury mattresses in the UK are upward of ₤2,000. Harrison Spinks is the largest high-end bed manufacturer with one third market share in the UK, while the Wade Group makes furniture. Harrison Spinks uses Caparo's coil springs and cotton grown in India for their mattresses.
The market for luxury mattresses in India is in nascent stages and has significant growth potential in line with rising disposable incomes and increasing millionaires. “We expect the venture to break even in the first year itself,” Mr Paul said.
Recently, Swedish uber luxury bed-makers Hastens, whose beds cost anywhere between Rs 3 lakh and Rs15 lakh too, upped its presence in India.
Caparo designs and manufactures value-added steel and engineering products for the automotive, aerospace and defence segments.