In the innerspring mattress sector, Bengaluru-headquartered Peps is considered to be India’s largest brand with a product lineup that takes up 56% of the market share. Peps has redefined the way Indians sleep. In an interview, Peps Industries Private Limited managing director K Madhavan speaks to TNIE about his company’s plans. Excerpts:
What is the total size of the market?
Reports suggest the potential is Rs 6,000 crore, with the spring mattress segment worth Rs 550 crore. For Peps, this translates into Rs 5,500 crore market of non-consumers, or potential customers. Peps holds 56% market share.
Has India accepted spring mattresses?
While 79% developed and developing countries use spring mattresses, India is yet to accept it fully. Even today, a majority of 1.3 billion people use cotton mattresses. Getting the customers believe and buy the product was a challenge.
Tell us about growth story of Peps.
After taking over a sick unit in 2006, we associated with Restonic. We have a 30-year agreement for India, Sri Lanka, Bangladesh and Nepal. After consolidation in India, we will move to the remaining countries.
In 2006, Peps disrupted the metal spring mattress market. From Rs 4 crore in 2006, our turnover grew to Rs 300-plus crore in 2017. We have facilities in Pune, West Bengal, Delhi and Coimbatore; a workforce of 650; and a network of 5,000 dealers. In last three years, we made inroads to go pan-India.
What are the main challenges?
Initially, the challenge was educating customers about spring mattresses. Now, it is about being the leader. Competitors are copying everything, right from the product to the branding.
How will you reach out to all sections of the society?
We have segmented products according to the buying capability of customers. Spring Koil, which is priced between Rs 9,900 and Rs 16,000, is the first segment. Spine Guard is priced from Rs 22,000 to Rs 40,000. The third segment is priced between Rs 26,000 and Rs 50,000. The ultra luxury products range from `45,000 to `1 lakh plus.
What is next in the pipeline?
Peps is re-launching brand Hypnos. We plan to have exclusive Hypnos stores across metros pan-India. Hypnos products are already positioned on online platforms such as Amazon, Flipkart etc. The company has set up a Rs 22 crore project for this year for Hypnos.