Sheela Foam(Sleepwell Mattress) Result Update

Sheela Foam Is largest player in Indian mattress industry.

Sheela Foam  - Q3FY19

• TDI price has come down to about 154 and our feeling or our understanding is that it should still be going down a little bit, but the rate of drop is going to be far, far smaller, and this is definitely looks like a stable price.

• In volume we have grown by 11% and as we look down the balance part of the year and the coming years we see that growths to be continuing, so that is really indicative of that the unorganized sector is eventually beginning to shift to the organized sector. I note it takes time, from GST times we were expecting that it would happen like a switch, but probably does not, but the picture is now getting clearer and it is definitely moving in that direction.

• TDI Average price for the quarter was Rs 255 compared to Rs 293 QoQ

• Management is hinting at 10% volume growth and 5%-6% value growth.

• Sequoia bed & Wakefit are new competitor coming up on e-commerce side