Stanley Lifestyle, a Bengaluru-based maker of premium furniture and home decor products, has set a three-year time-frame to launch an IPO.

“The company is currently debt-free, with ₹360 crore in revenues,” said Sunil Suresh, Founder-Chairman and MD of the Stanley Group. “The group aims to achieve ₹700 crore before the IPO. We have so far raised ₹150 crore via a private equity investment from OIJIF, backed by SBI, last year. These funds are sufficient for us to expand our retail presence — to open ‘Stanley Level Next’ stores and ‘Sofas & More’ store formats.”

The company, which is into manufacturing and retailing home furnishing brands, is a global vendor to IKEA and La-Z-Boy. It has also has partnered with Williams-Sonoma of the US.

“Over the next two years we plan to open five Stanley Level Next (kitchens, wardrobes and storages) stores with an investment of ₹20 crore, and expand our omni-channel mid-segment furniture outlets Sofas & More from seven at present to 50 in three years with an investment of ₹50 crore,” said Suresh.

Currently the company has 20 stores and 30 sales points in 10 cities. “This, post our IPO, we will be expanded to cover more cities,” he added.

The company plans to invest to expand its manufacturing capacity in the factories located in Bengaluru. “We will be expanding our 3.5 lakh sq ft manufacturing facility with an additional 2 lakh sq ft of space to meet our growing demand. We are also to increase head count from the present 1,200 people to 5,000 in the next five years,” said Suresh.

“The factory expansion is to cater to manufacturing kitchens, wardrobes and for premium products like mattress and bedding, with an investment of ₹15 crore,” he added.

Local manufacture

For manufacturing locally, Stanley has opted for the backward integration model. “Earlier, sofas and beds were imported; now, with the Make in India initiative, we want to cut down on imports,” said Suresh.

“For manufacturing locally we have plunged head-on through our rich legacy of upholstering for top OEMs and our divisions have served some of the most iconic global brands. We have set up a cabinetry manufacturing unit with German know-how, to design and manufacture kitchens, wardrobes and storage units.”

Talking about the automobile division, Suresh said: “The division clocked ₹45 crore in revenues mainly by providing seat covers. For the last two years, the revenues have fallen due to poor auto sales. This is one of the reasons for us to move from a product brand to a complete home furnishing solutions provider.”

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