Magenta Lifecare Limited is an Indian company that manufactures mattresses and pillows under the brand name “Magenta. They primarily deal in foam-based sleep products and cater to the premium segment in the Indian market.
Understanding the Company’s Foundation of Magenta Lifecare:
History & Milestones of Magenta Lifecare:
Founded in 2015: The company was originally incorporated as “Magenta Lifecare Private Limited” in August 2015.
Product Focus: Since its inception, Magenta Lifecare has been in the business of manufacturing and selling foam-based sleep products like mattresses and pillows under the brand name “Magenta” across India.
Product Range Expansion: Their product portfolio includes various types of mattresses (memory foam, latex, bonded, pocketed spring) and pillows (memory foam, moulded memory foam, moulded contour) to cater to different needs and preferences.
Manufacturing Unit: They have a manufacturing facility located in Gujarat, India, with a current production capacity of 60,000 mattresses and 70,000 pillows
Distribution Network: The company sells its products through a dealer network spread pan-India. They also have an established institutional sales network supplying to hotels and service apartments.
Recent Development (2023): In June 2023, the company converted from a private limited company to a public limited company. Following this conversion, their name was updated to “Magenta Lifecare Limited” in July 2023
Vision & Strategy of Magenta Lifecare
Increase Brand Awareness and Equity to Acquire New Customers
Drive Continued Operational Excellence
Continue to focus on development of personalized products
Enhance customer base by entering new geographies –
Indian Mattress market is fragmented with a large number of branded and non-branded players present in the market selling a variety of mattresses with local distribution channels. The Indian mattress market is dominated by the unorganized sector. However, the organized sector is now growing with the rising demand for good quality mattresses among Indian consumers. The mattress industry in India is positioned at an interesting juncture, where growth is spurred by changing customer dynamics and technological innovations. The COVID19 pandemic has been a major factor to bring about this transformational shift as consumers have become increasingly aware and conscious about the health benefits of using the right mattress and the functionality of the overall product. Companies today are offering mattresses that have anti-microbial properties. Some are made using sandalwood infused latex, and then there are products built around Orthopedic Memory; truly a revolutionary time for the mattress industry in India. In a bid to meet increasing demands and offer customers a seamless experience, mattress manufacturers today are relying on technology and digital initiatives to enhance the entire production and buying experience.
Market Size & Share
India’s nominal gross domestic product (GDP) at current prices is estimated to be at US$ 3.31 trillion (Rs. 272.41 trillion) in FY22. Additionally, the Nominal GDP at current prices in Q3 of 2022-23 was US$ 874.84 billion (Rs. 71.82 trillion), as against US$ 792.3 billion (Rs. 65.05 trillion) in 2021-22, estimating a growth of 10.4%. With 115 unicorns valued at more than US$ 350 billion, as of February 2023, India presently has the third-largest unicorn base in the world. The government is also focusing on renewable sources by achieving 40% of its energy from non-fossil sources by 2030. India is committed to achieving the country’s ambition of Net Zero Emissions by 2070 through a five-pronged strategy, ‘Panchamrit’. Moreover, India ranked 3rd in the renewable energy country attractive index.
The range of mattresses and pillow manufactured by us comprise of economy mattress, desire mattress, luxuria mattress, imperia mattress, spring mattress, cielo lite pillow, aero pillow, elixir pillow, axilio pillow, esta pillow, gel lite pillow, Orion pillow, Resto pillow, etc.
Net Cash Flow from / (used in) Operating Activities
(6.23)
217.62
136.11
108.95
Net Cash Flow from / (used in) Investing Activities.
(0.76)
(2.25)
(2.29)
(31.65)
Net Cash (Used in) / Generated from Financing Activities
10.72
(214.94)
(126.97)
(56.14)
Capitalisation statement
Particulars
Pre-offer as at 30 April 2023
Borrowings
Non-current borrowings (including current
maturity of long term debt)
112.55
Total current borrowings
352.18
Total Borrowings=(A)
464.73
Equity
Equity Share Capital
154.24
Reserve and Surplus
374.60
Total Equity(B)
528.84
Capitalisation(A)+(B)
993.57
Non-current borrowings (including current
maturity of long term debt)/Equity
0.21
Total borrowings/Equity
0.88
Future Potential & Investor Insights:
Roadmap for Future & Growth
Product innovation, appropriate marketing strategies to promote the idea of good sleep and intensive training and development of the stakeholders in the domestic mattress segment is already contributing a lot towards shaping up the mattress industry in India. According to India Mattress Market Outlook, 2022, the market share of unorganized players is expected to drop drastically in the coming years. The Indian mattress market, Factors that will guide Indian Mattress Industry in 2023. Getting guidance from industry experts for the growth of the Indian mattress Industry market
Based on the conversation, we had with some of the industry experts, one thing is clear the rise in income levels and growing health consciousness among people has contributed tremendously towards the growth of the Indian mattress market in recent years.
Mattress makers have been adopting innovative strategies both in the offline and online mediums to deliver unique experiences to customers, who are now willing to experience new sleep products
Increased infrastructural developments and the growing number of residential facilities and hotels across the country are hiking the demand for luxury mattress brands in India.
The market is believed to get back on track and the growing awareness about the importance of sleep among consumers is expected to give the industry an upward push.
In 2023, the scope is quite huge as numerous initiatives have been taken by the industry for the sake of consumers. The organised sector is taking several initiatives to battle against the unorganized sector
The industry is also witnessing a change in the way consumers now view sleep products. Earlier, the consumers would be price sensitive, now they are more focused on the comfort and functionality of the product.
The whole idea of recycling mattresses is being promoted under the slogan ‘#phekonahirecyclekaro’ (meaning don’t throw but recycle). All these premium mattresses will now be sold by green stores by green dealers.
A lot of research reports indicate that changing consumer mindset is one of the biggest reasons to drive growth in this Indian mattress market. As per experts, consumers are no more price sensitive and prefer quality over cost-effectiveness.
Consumers who would earlier just pick up a cost-effective sleep product are now researching well about a mattress or other sleep products and then finalizing on a product. They now know the difference between different types of mattresses and enquire about the material that has gone into manufacturing a mattress
Consumers have even started buying from international brands because of their high-quality and contemporary products. While the key players in the mattress space are constantly innovating new sleep products and devising marketing strategies to influence consumers’ mindsets.
Another reason that is helping the organized segment grow is the growing number of residential units across the country. With the increasing number of hotels and real estate businesses, the demand for good quality sleep products will only grow with time.
The entire ecosystem that has been built steadily over the years to pull more consumers towards the organized market is slowly reaping results.
If the unorganized sector poses a challenge, then it also gives tremendous opportunity for the Indian mattress space to turn this problem to its advantage.
