Companies

Peps to invest Rs 10 cr to revamp factory, refurbish corporate office

L N Revathy Coimbatore | Updated on January 24, 2018

K Madhavan, Managing Director, Peps (file photo)   -  BL

Coimbatore-based spring mattress manufacturing company Peps Industries Pvt Ltd plans to invest Rs 10 cr to revamp its factory here and refurbish its corporate office in Bangalore.

This investment, according to K Madhavan, Managing Director, Peps, is to support its growth and expansion plans. While 60 per cent of the funds requirement would be from internal accruals, the company would seek bank finance for the remaining sum, Madhavan told BusinessLine.

The Rs 165-cr mattress manufacturing major makes 14,500 mattress a month at present. It is proposed to scale it up to 18,000 mattress by the end of this fiscal.

The company clocked a turnover of Rs 225 crore in 2014-15. “Our growth at the end of the just-ended fiscal was 54 per cent, way above the CAGR of 40 per cent. We would like to keep it up," he added.

With this expansion, Peps also plans to strengthen its dealership network by 40 per cent from 3,800 at present.

It has launched a new product Peps Organica, wherein the pocketed springs are topped with natural latex foam and upholstered with cotton fabric.

Madhavan said plans are underway to mechanise the entire process and systems in manufacturing. “At present all equipment in mattress manufacture exist in silos and manual intervention is needed at each stage of product manufacture. We want to mechanise the process as in Europe and other developed countries. We are in discussion with a German company for technical collaboration,” he said, preferring to share more details after striking the deal.

The company's corporate office at Whitefield in Bangalore is slated to be inaugurated on July 15, Madhavan said and added that the Peps brand of mattress commands a 64 per cent market share.

Published on June 10, 2015

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