Table of Contents
Largest Vertically Integrated Textile Manufacturer in India.
VISION
Quality – The Maxim of KPR mill.
To Ensure a strong presence in the global textile market by focusing on quality and exceeding customer and stakeholder expectations.
MISSION
KPR mill offers innovative, customized and value-added services to Customers.
It constantly upgrades technology and skill-sets to cater to the ever-changing needs of the Apparel and Textile industry.
KPR mill wants to become a process-driven organization.
And also wants to be the most preferred one-stop source for readymade knitted garments, fabric and yarn.
The company delivers added value to Customers, Shareholders, Employees and Society, at large.
It intends to be an ethical, transparent and responsible Global Organization.
BRANDED RETAIL BUSINESS OF KPR MILL
FASO
With the help of best workmanship, the entire FASO products are manufactured with 100% Organic Cotton, super fine compact yarn, super soft micro nylon elastics.
These key factors led to ultra-soft comfort and skin friendly products. Currently offering 43 styles, mix of inner wear & athleisure and planning to add some more styles during the current year.
FASO is currently available in all major locations of Tamil Nadu, Kerala, Andhra Pradesh, Telangana and Karnataka (with 34 distributors and 2000 retailers).
And it is also available in some of the Hyper Market and also through online platforms like Amazon, Myntra, Ajio, Flipkart, Shoppers stop (online), Fynd & faso.in.
For more business case studies go through the following links:
AMBUJA CEMENT SHARE: BUSINESS CASE STUDY – Learn Two Trade
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HAVELLS SHARE: BUSINESS CASE STUDY – Learn Two Trade
SUBSIDIARY COMPANIES OF KPR MILL
I. QUANTUM KNITS PVT. LIMITED
II. K.P.R. SUGARMILL LIMITED
III. JAHNVI MOTOR PRIVATE LIMITED
IV. GALAXY KNITS LIMITED
V. KPRSUGARANDAPPARELS LIMITED
VI. KPR EXPORTS PIC
VII. KPRMILL PTE. LTD.
K.P.R. SUGAR MILL LIMITED
SUGAR AND COGEN
The Sugar Plant’s Crushing capacity has been increased from 5000 TCD (tons of cane per day) to 10000 TCD during the year.
In November 2021, the sugarcane crushing was started and produced 85,423.10 MT of sugar.
Out of 1,1028.79 Lakh units of power generated 600.13 Lakh units were sold and captively consumed amount is 428.66 lakh units.
They have exported 21,279 MT of Sugar.
ETHANOL PLANT
The ‘State of the Art’ Ethanol plant with 90 KLPD capacity commissioned during the last year has been adding to the revenue of the Company.
During the year 23,373 KL of Ethanol was produced, by using Sugar Syrup and Molasses. And also 23,600 KL was sold to oil marketing Companies.
Enthused by huge potential and positive outlook for ethanol production in India, its production capacity has been increased to 130 KLPD and 6 MW Co gen with Incineration Boiler.
JAHNVI MOTOR PRIVATE LIMITED
The Company could sell 51 Audi Cars and 31 Harley Davidson Motor cycles earning a total revenue of Rs 50.47 Crores.
They set up a clothes manufacturing unit under the name ‘KPR Exports PLC’ at Mekelle Industrial Park, Mekelle, Tigray Region, Ethiopia, during the year 2018.
In FY 2020-21, the Company has earned a revenue of Rs 393 Lakhs.
GALAXY KNITS LIMITED
The Company has not yet commenced its operation.
KPR SUGAR AND APPARELS LIMITED
For creating huge potential and positive outlook, it was decided to increase the manufacturing capacities in Garment and Sugar cum Ethanol segments.
To accelerate the same a separate wholly owned Subsidiary under the name ‘KPR Sugar and Apparels Limited’ (KPRSAL) was promoted holding its entire equity stake.
KPR mill have nominated their directors therein and are controlling its entire Board.
KPRSAL is setting up a new Garment manufacturing unit at Chengappally, Tirupur District, Tamil Nadu with a capacity to produce 42 million Garments per annum.
A Memorandum of Understanding has been entered into with the Government of Tamil Nadu that may facilitate infrastructures and regulatory requirements.
KPRSAL is also setting up a Sugar, Co-Gen-cum-ethanol plant with a capacity to produce 10,000 TCD Sugar, and 220 KLPD Ethanol and 50 MW Co-gen at Gulbargah District, (Karnataka).
The Single window approval from the Government of Karnataka is attained for this project.
These new changes are expected to increase the value addition and thereby enhance the revenue of the Group as a whole.
KPR EXPORTS PLC – ETHIOPIA
Responding to the invitation from Ethiopia Investment Commission (EIC) and from the request and assurances from its Government to render all assistance and support, KPR had set up an Apparel manufacturing unit under the name ‘KPR Exports PLC’ at Mekelle Industrial Park, Mekelle, Tigray Region, Ethiopia, during 2018.
Erecting required machinery and equipment and engaging workers after training them at their manufacturing unit in India, the company has been producing and exporting Apparels since 2018.
KPR MILL PTE. LTD – SINGAPORE
The wholly owned Subsidiary of KPR mill was established for the purpose of marketing the products manufactured at Ethiopia which has generated a revenue of Rs 1,197 Lakhs during the year 2020-21.
COMMITTEES
I. Audit Committee
II. Stakeholders Relationship Committee
III. Nomination and Remuneration Committee
IV. Corporate Social Responsibility (CSR) Committee
V. Risk Management Committee.
FOREIGN EXCHANGE EARNINGS AND OUT GO
| Sr No | Particulars | 2020-21 | 2019-20 |
| 1 | Foreign Exchange earned through exports amounted to | 1,106,694 | 1,19,727 |
| 2 | Foreign exchange used | 25,864 | 59,127 |
STAKEHOLDERS RELATIONSHIP COMMITTEE
The Committee consists of 3 Directors of whom 2 are Independent and Executive Director and one is non independent and Executive Director.
MANAGEMENT DISCUSSIONS AND ANALYSIS
INDIAN COTTON BALANCE SHEET FOR THE SEASON 2020-21
| As on 31.03.2021 | (In Lakh Sales) |
| Opening Stock | 120.95 |
| Production | 371.00 |
| Imports | 11.00 |
| TOTAL SUPPLY | 502.95 |
| Consumption | 330.00 |
| Exports | 75.00 |
| TOTAL DEMAND | 405.00 |
| Closing Stock | 97.95 |
RISKS AND THREATS
Risk relating to Raw material
As India continues to be cotton surplus country the availability of Cotton is rest assumed. Increase in yarn price is able to absorb the higher cotton cost to some extent.
Risk relating to Technology obsolescence
They always buy the new advanced Technology Machinery and Equipment’s only.
Market Risks/Industry Risks
Their attitude towards stakeholders has secured their whole-hearted support during the difficult times.
Financial Risks
Annual and quarterly budgets are prepared and put up to the management for the help of detailed discussion and analysis.
i. Credit Risks: Systems are put in place for assessment of credit worthiness of customers before admission into dealing.
ii. Foreign Exchange Risks: Foreign currency exposure in Exports and Imports, significantly in US Dollar & Euro. And also this Foreign currencies are exposed to risk on account of adverse currency movements.
DEPRECIATING ASSETS
The estimated useful life of the property, plant and equipment followed by the Group for the current and the comparative period are as follows:
Factory Building – 30 Years
Non-Factory Building -60 Years
Plant & Equipment’s – 10-20 Years
Windmill – 12 Years
Electricals – 14 Years
Furnitures & fixtures – 10 Years
Computers & accessories – 3 Years
Vehicles – 8-10 Years
DISTRIBUTION OF EARNINGS
DISTRIBUTION OF SHAREHOLDING
The shareholding distribution of the equity shares as of December 31, 2021 is
given below: –
| No. of Equity Shares | No. of Shareholders | No. of Shares | Percentage of Shareholding |
| 1-500 | 18,700 | 11,11,452 | 92.89 |
| 501-1000 | 677 | 5,04,696 | 3.36 |
| 1001-2000 | 323 | 4,77,668 | 1.60 |
| 2001-3000 | 116 | 2,91,725 | 0.58 |
| 3001-4000 | 54 | 1,96,730 | 0.27 |
| 4001-5000 | 45 | 2,03,118 | 0.22 |
| 5001-10000 | 87 | 5,98,955 | 0.65 |
| 100001 and Above | 129 | 6,54,25,656 | 0.65 |
| TOTAL | 20,131 | 6,88,10,000 | 100 |
SHAREHOLDING PATTERN AS ON 31ST MARCH 2021
| CATEGORY | NUMBER OF SHARES HELD | % OF HOLDING |
| Promoters & Promoters Group | 5,14,13,051 | 74.72 |
| Mutual Funds | 1,105,53,917 | 15.34 |
| Foreign Institutional Investors | 14,78,547 | 2.15 |
| NRIs | 2,96,596 | 0.43 |
| Bodies Corporate | 2,97,647 | 0.43 |
| Public | 4,770,242 | 6.93 |
| Total | 6,88,10,000 | 100.00 |
FINANCIAL HIGHLIGHTS
| FINANCIAL KEY METRICS | VALUE |
| MARKET CAPITALIZATION | ₹ 19,820 Cr |
| STOCK P/E | 23.5 |
| INDUSTRY P/E | 16.4 |
| ROE | 30.4 % |
| ROCE | 31.6 % |
| DEBT TO EQUITY RATIO | 0.37 |
The market capitalization of KPR mill is ₹ 19,820 Cr which is a large cap company and has good competition in its respective sector.
In Ready-made garments/ Apparells sector, KPR mill stands 2nd in this segment.
Currently the stock P/E is 23.5 which is higher than the industry P/E of 16.4.
The return on equity is 30.4 % which is quite favorable as it directly indicates that the investors are getting more than bank FD returns on their equity in this stock.
The return on capital employed is 31.6 % and shows a superb operating income is generated for every rupee of capital invested.
KPR mill currently has 0.37 debt which is less and the company is focusing on reducing it further.
REVIEW OF OPERATIONS
KPR reported a good result in the year under review and also saw an encouraging demand from all segments.
The Cotton prices remained stable for most part of the year, yarn market was bullish and garment order levels were also comfortable.
And by the pandemic situation, garment orders started bouncing back from the vacuum. The industry witnessed a significant shift in demand from formal wear to casual wear.
Since KPR is primarily in the casual wear segment the trend was continuously more favorable to the company.
The consequential thrust in demand for yarn and fabric activities have accelerated the drive in Tirupur Knitwear Market.
KPR’s trendsetter welfare facilities and the dedicated employee’s participation increased the productivity even during the COVID period ensuring KPR’s outstanding ability and sustained competitiveness.
FUTURE OUTLOOK
Proving its strong fundamentals and leadership, KPR mill company was able to withstand all hurdles during this tough situation by delivering great performance.
The recently added latest technology, vortex machine produces various blends and range of value-added viscose yarn that creates new wave of old fashion.
KPR mill is highly engaged in manufacturing cotton products, and of course the market is slowly moving into value added manmade fiber also.
So as to meet the demand from the customers, KPR mill has installed the vortex machine.
The establishment of a new advanced technology knitting facility housing the contemporary imported knitting machines would add value to the production facilities.
The additional Garment capacity envisaged would also add up to the revenue.
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