Massive Expansion! Leading Bedding Firm Sets Up Third U.S. Facility – Stock Up 11 per cent

Major Expansion Alert! Bedding Firm Invests Rs 125 Cr in U.S.

Indo Count Industries Limited has announced the establishment of a new greenfield manufacturing facility in North Carolina, further expanding its presence in the United States. This will be Indo Count’s third facility in the country, complementing its existing plants in Phoenix, Arizona, and Columbus, Ohio. The move is aimed at enhancing its Utility Bedding business and improving customer service across key U.S. regions.

Investment and Production Capacity

The company is investing approximately Rs 125 crore (15 million dollars) in the new facility, which will produce 18 million pillows annually. The project will be financed through a debt-equity ratio of 75:25. With this expansion, Indo Count's total U.S. manufacturing capacity will increase to 31 million pillows and 1.5 million quilts annually.

Revenue Growth and Strategic Vision

With the addition of the North Carolina plant, Indo Count’s Utility Bedding segment is projected to generate total revenue of approximately Rs 1,460 crore (175 million dollars) across its three U.S. facilities. The company sees this expansion as a crucial step in creating a nationwide manufacturing network, improving operational efficiency, and reinforcing its position as a leader in Utility Bedding solutions.

Financial Performance in Q3 FY25

Indo Count reported a strong performance in Q3 FY25, with total income rising 61 per cent to Rs 1,168 crore from Rs 727 crore in Q3 FY24. EBITDA grew 40 per cent to Rs 165 crore, but the EBITDA margin declined to 14.2 per cent from 16.2 per cent. Profit after tax (PAT) increased 30 per cent to Rs 75 crore, while earnings per share (EPS) stood at Rs 3.81.

Stock Market Reaction

As of 11:30 AM on February 12, Indo Count’s stock was trading at Rs 300, up 11.26 per cent. The company has a market capitalization of Rs 5,921 crore, a price-to-earnings (P/E) ratio of 18.1 against the industry P/E of 21.8, and a return on capital employed (ROCE) of 18.3 per cent. The return on equity (ROE) stands at 17.5 per cent, with a debt-to-equity ratio of 0.66.

Disclaimer: The article is for informational purposes only and not investment advice.