Companies

To meet growing demand, Peps Industries mulls converting mini-plants into large scale units

Our Bureau Chennai | Updated on July 28, 2021

As part of its capex plans, the company is looking forward to scale the number of its “Great Sleep Stores” across the country

Peps Industries, a leading spring mattress manufacturer, is planning to convert few of its mini plants into large scale units to meet the growing demand across the country.

“Peps has a hub and spoke manufacturing model. We have our major plant in Coimbatore and mini units in many other places,” K Madhavan, Managing Director, Peps Industries said.

“With the demand going up, we feel that we have to convert few of our mini plants into large manufacturing units.” Madhavan added.

He was addressing a virtual event on Tuesday to announce the launch of Peps Cameo — a soft top mattress made of jersey fabric

Peps Industries’ main manufacturing facility is built on an 11-acre industrial campus in Coimbatore and produces 25,000 mattress per month. The company also has strategic business units (SBUs) in Pune (for the western market) producing 6,000 mattress per month, a SBU in Delhi (producing 8,000 mattress per month) and a SBU in Kolkata to cater to the eastern region, which produces 5,000-6,000 mattress per month.

“We wanted to do this (plant expansion) in the western zone of the market. We always feel that in the southern and western market, the psyche of the customers are almost the same and so we see a great opportunity in the western market,” Madhavan said.

Peps pioneered the concept of spring mattress in India way back in 2006 at a time when Coir and foam mattresses dominated the market. Due to its early entry and through a series of worldclass sleep solution products, the brand has acquired dominant position in the spring mattress segment. The company also has a license from Restonic USA, for developing products under their brand.

“Our aim is to ensure that the we popularise the spring mattres segement and being the brand leaders, if the spring mattres segment grows the bigger pie come to us. That is the brand strategy that we would like to adopt in the future,” said Madhavan.

Capex plans

As part of its capex plans, the company is looking forward to scale the number of its Great Sleep Stores (GSS) across the country. Currently, there are 109 GSS across the country, and Peps aims to add 41 more stores by the end of 2021. The stores offer an immersive experience with the customer at the centre and trained experts to help facilitate the process of choosing a mattress that is uniquely suited to an individual’s sleep needs.

“We are seriously looking for expansion and to reposition the Peps brand itself. As of today, we are a cash rich company; so with our internal accruals and some additional funding from bankers, we are looking into sizeable expansion plans,” Madhavan said.

Published on July 28, 2021

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