### **Executive Summary** **Indo Count Industries Ltd. (ICIL)**, established in 1988, is the **world’s largest manufacturer of bed linen** and a **top-three global supplier to the U.S. market**. The company has completed a major strategic transformation—**“Indo Count 2.0”**—shifting from a B2B-focused, export-centric manufacturer into a **branded, omnichannel global home textiles solutions provider**, with an expanded footprint in the **U.S. branded and utility bedding spaces**. With a $500 million revenue base in FY25 and a target to **double revenues by 2028**, Indo Count is strategically diversifying into **value-added, premium product segments**, expanding its U.S. manufacturing presence, and strengthening its brand portfolio through **acquisitions and licensing**, while accelerating growth in digital and domestic markets. --- ### **Core Business & Manufacturing Capabilities** - **Annual Bed Linen Capacity**: 153 million meters, across two integrated Indian plants: - **Kolhapur, Maharashtra**: 108 million meters - **Bhilad, Gujarat**: 45 million meters - **Vertical Integration**: Full in-house capabilities—spinning, weaving, processing, cut-and-sew—ensuring control over quality, cost, and delivery. - **Global Manufacturing Footprint**: - **India**: 2 manufacturing facilities (Bhilad, Kolhapur) - **USA**: 3 utility bedding facilities in **Ohio (Groveport)**, **Arizona (Phoenix)**, and **North Carolina (Kernersville)** - Capacity: **31 million pillows/year** and **1.5 million quilts/year** - U.S. operations support **local production** for high-value, freight-sensitive utility bedding products (e.g., pillows, mattress protectors) - **Sustainability Focus**: - 9.3 MW solar power plant at Bhilad supplies **90% of energy needs** - Higg Index FEM **Gold rating** for environmental performance - Project GAGAN supports sustainable cotton farming --- ### **Strategic Transformation: Indo Count 2.0** Launched in FY25, **Indo Count 2.0** marks a fundamental shift from white-labeled manufacturing to a **branded, omnichannel model**, targeting higher-margin segments: | **Shift** | **Old Model** | **New Model** | |---------|-------------|--------------| | **Model** | B2B, White-Label | Branded & B2C/D2C | | **Revenue Stream** | Primarily Core Bed Linen (93% in FY25) | Diversified (13% from new businesses in Q1 FY26) | | **Geographic Mix** | 70% U.S. | Targeting 60:40 U.S.:Non-U.S. split | | **Product Focus** | Bed Sheets | Full Soft Home: Bed, Bath, Rugs, Window Treatments | --- ### **U.S. Brand & Utility Bedding Expansion** Indo Count has significantly strengthened its U.S. market presence through **acquisitions, licensing, and greenfield investments**: #### **1. Acquisitions** - **Wamsutta** (acquired ₹85 crore, July 2024): - 175-year-old U.S. legacy brand - Launched as a **direct-to-consumer (D2C) brand** (Wamsutta.com) in **July 2025** - Positioned as **premium tier** with legacy and quality positioning - **Fluvitex USA** (Ohio): - 5 million pillows + 1.5 million quilts capacity - Revenue potential: $50 million - **Modern Home Textiles** (Arizona): - 8 million pillows capacity - Revenue potential: $35 million - **Total U.S. Acquired Revenue Potential**: **$85 million** #### **2. Licensed Brands (via Iconix Brand Group & Serta Simmons Bedding)** - **Fieldcrest (est. 1893)**: Luxurious, durable bedding for modern families - **Waverly (est. 1923)**: Design leader in American home decor, targeting women 25–44 - **Beautyrest**: Licensed from Serta Simmons Bedding for utility bedding - Flagship of global sleep innovation, targeting B2B and branded channels #### **3. Greenfield Expansions** - **North Carolina Facility (Kernersville)**: - Investment: ₹130 crore (~$15.6 million) - $75–90 million peak annual revenue potential - Phase 1 completion: **September 2025** - Strategic **coast-to-coast** U.S. footprint: Midwest, West, and East Coast coverage --- ### **Revenue Diversification & Growth Targets** - **Total Revenue (FY25)**: ~$500 million - **Q1 FY26 Revenue (New Segments)**: - **Utility Bedding & U.S. Branded Business**: ₹130 crore (vs. ₹125 crore in Q4 FY25) - **Branded Contribution**: 20% of consolidated revenue - **E-commerce/D2C**: 12% of revenue - **Domestic India Business**: 2.25% - **Non-U.S. Core Business**: 30% #### **Growth Targets** - **Double Revenue by 2028** - **$175 million** revenue from **U.S. utility bedding** segment - **$100 million** in revenue from **branded business** (Wamsutta, Fieldcrest, Waverly, Beautyrest) within 3 years - **India domestic business goal**: 7–8% of revenue (vs. 2.25%) in 3–4 years --- ### **Brand Portfolio: Owning, Licensing, and Building** | **Brand** | **Type** | **Key Details** | |--------|-------|---------------| | **Wamsutta** | Owned | 175-year legacy, D2C launch in July 2025; product expansion into towels, rugs, window treatments | | **Fieldcrest** | Licensed | Luxury heritage, 1893; targets durability and everyday elegance | | **Waverly** | Licensed | Fashion leader since 1923; pattern-driven, targets design-savvy women | | **Beautyrest** | Licensed | Premium sleep technology; utility bedding via Serta Simmons | | **Gaiam** | Partnership | Wellness & yoga leader; premium bath & bedding for relaxation | | **Boutique Living** | Domestic (India) | Premium brand; Egyptian cotton, 600–1000 TC sheets; 2,000+ MBOs | | **Layers** | Domestic (India) | Value-driven; tech-enabled (antimicrobial), fashion-forward; 1,500+ retail outlets | --- ### **Digital & Channel Transformation** - **D2C Focus**: - **Wamsutta.com** now live (July 2025) - **Boutique Living** and **Layers** websites and e-commerce platforms active - **E-commerce Growth**: - 12% of total revenue (up from 4% in FY21) - Active on Amazon, Flipkart, Myntra, Nykaa, Home Centre, etc. - **Omnichannel Strategy**: - B2B (white-label), B2C, D2C, retail, and quick commerce - Over 2,000 MBOs and LFS partners in India (Reliance, Lulu, Shoppers Stop) - Pan-India Retailers & Distributors Meet in 2025 to expand domestic network --- ### **Global Presence & Market Access** - **Exports**: 97% of revenue - **Markets**: 50+ countries across USA, UK, EU, Australia, UAE, Japan, Middle East - **Subsidiaries**: USA, UK, UAE - **Distribution Infrastructure**: - Showrooms, design studios, e-commerce drop-shipping centers in U.S., UK, UAE - Warehouses and long-term retail partnerships (e.g., Walmart “Giga Guru” status) - **Free Trade Agreements**: - Leveraging **India-UK FTA** (eliminates 10–12% duties) - Positioned to benefit from **India-Australia, India-UAE, and future EU FTAs** --- ### **Management & Governance** - **Leadership Appointments**: - CEO appointed for U.S. operations - CFO for India to drive strategic transformation - **Board-Driven Strategy**: Emphasis on financial discipline, capital efficiency, and ROIC - **Team**: Over **10,000 employees** (direct + indirect), with dedicated U.S. marketing, sales, merchandising, and sourcing teams ---