KPR Mill Ltd
NSE:KPRMILL
KPR Mill Ltd
KPR Mill Ltd., nestled in the heart of South India's bustling textile industry, is an exemplar of vertical integration and operational excellence. Established in 1984, this Coimbatore-based company has evolved from its modest beginnings into one of India's largest integrated textile manufacturers. With a keen focus on innovation and sustainability, KPR Mill has built a seamless production chain that spans from spinning to garment manufacturing. This in-house operation framework allows the company to exercise control over quality and costs, a significant competitive advantage in the fiercely competitive textile market. Spinning over a wide range of yarns, KPR Mill caters to various customer segments, providing raw materials for diverse textile applications.
What truly distinguishes KPR Mill is its strategic emphasis on environmentally friendly practices, embracing measures like wind power generation to reduce its carbon footprint. The company has capitalized on the global shift towards more sustainable manufacturing processes, making significant strides in garment exports. By creating and exporting high-quality knitted apparel to discerning international markets, KPR Mill generates a significant portion of its revenue while reinforcing its global footprint. These consistent strides in quality and environmental responsibility have not only bolstered KPR Mill's bottom line but have also placed it as a formidable player among its peers. Through its continuous innovation and strategic business models, KPR Mill showcases how traditional industries can thrive in contemporary markets.
KPR Mill Ltd., nestled in the heart of South India's bustling textile industry, is an exemplar of vertical integration and operational excellence. Established in 1984, this Coimbatore-based company has evolved from its modest beginnings into one of India's largest integrated textile manufacturers. With a keen focus on innovation and sustainability, KPR Mill has built a seamless production chain that spans from spinning to garment manufacturing. This in-house operation framework allows the company to exercise control over quality and costs, a significant competitive advantage in the fiercely competitive textile market. Spinning over a wide range of yarns, KPR Mill caters to various customer segments, providing raw materials for diverse textile applications.
What truly distinguishes KPR Mill is its strategic emphasis on environmentally friendly practices, embracing measures like wind power generation to reduce its carbon footprint. The company has capitalized on the global shift towards more sustainable manufacturing processes, making significant strides in garment exports. By creating and exporting high-quality knitted apparel to discerning international markets, KPR Mill generates a significant portion of its revenue while reinforcing its global footprint. These consistent strides in quality and environmental responsibility have not only bolstered KPR Mill's bottom line but have also placed it as a formidable player among its peers. Through its continuous innovation and strategic business models, KPR Mill showcases how traditional industries can thrive in contemporary markets.
Challenging Environment: FY '24 was tough for the textile industry, with margin pressure from lower demand, fluctuating cotton prices, and strong global competition.
Garment Volume Growth: K.P.R. produced around 40 million garments in Q4, with expectations to maintain this run rate in the first half of FY '25 and increase to 45 million per quarter after brownfield expansion.
Margins Declined: Yarn margin declined to 12% (from 15% last quarter) and garment margin to 24% (from 27%), mainly due to cotton price fluctuations and inventory costs.
CapEx & Expansion: Brownfield garment capacity expansion (adding 30 million pieces, to reach 177 million annual capacity) is expected to complete in the first half of FY '25. No major new CapEx in other segments planned yet.
Order Book: Current order book exceeds INR 1,000 crores, with some new US customers added.
Sugar & Ethanol: Sugar margins reported at 28% with revenue of INR 73 crores in Q4; ethanol revenue at INR 150 crores. Sugar production for FY '24 was 1,76,000 tons, ethanol at 9 crore liters.
Outlook: Management believes the textile industry will rebound as domestic demand and exports recover, but is waiting for clearer market improvement before further expansion.
