KPR Mill

KPR MIll Logo.jpg

KPR mill is an apparel manufacturing company, which is engaged in the business of producing yarn, knitted fabric, readymade garments and wind power. It's Yarn division has over 353,570 spindles with a production capacity of approximately 90,000 million tons per annum. Its fabric division is equipped with automatic circular knitting machines that can knit over 27,000 million tons per annum of various kinds of fabric. Its fabric processing unit has a capacity to process over 9,000 million tons per annum. Its garment manufacturing facility has a capacity to produce over 95 million garments per annum. The Company has over 66 wind mills with total captive power generation capacity of approximately 61.92 megawatts.

KPR Mills Shareholding pattern

Key Milestones

KPR Mills Key milestones
KPR Mills Key milestones

Business Overview

It is one of the largest vertically integrated textile player with presence across the entire value chain - from “fibre to fashion. Marquee relationships with about 1,200 regular domestic clients for yarn and fabric and around 50 leading international brands for garments. With 95 million Garments capacity , KPR has become one of the largest Apparel Manufacturers in India. Vertical integration of manufacturing process enables it to customize products as per the client’s specifications with consistent quality assurance in a cost-effective manner

KPR Mills Business overview
KPR Mills Business overview

Industry Overview

According to the WTO, the global Textile and Clothing trade has touched US$ 797 billion in CY2014. This indicates a CAGR of nearly 10% from the 2009 levels at the peak of the economic crisis. Of the total trade, clothing or apparel trade constituted US$ 483 billion in 2014, while the remaining was on account of textile trade (US$ 314 billion). Leading countries (the U.S, EU and Japan) focus solely on highest-value stages of textile and apparel value chain, which are designing, marketing and distribution. Meanwhile, manufacturing activities are concentrated in China, India and other developing countries (Bangladesh, Vietnam, Pakistan, Indonesia, among others). The connection between manufacturers and the end-users created by traders from Hong Kong, South Korea and Taiwan is a unique trait of global textile and apparel sector.

Textile importers and exporters

The textile and clothing trade is expected to grow at around 5% annually over the next decade; and is expected to breach the US$ 1.3 trillion mark by the CY 2023.

Global textiles and apparel trade

India’s textile industry (worth around US$ 108 billion) contributes 4% to India’s GDP and constitutes 13% of the country’s export earnings. It is the second largest employer after agriculture, employing over 45 million people directly and 60 million people indirectly. The industry contributes approximately 14% to the overall Index of Industrial Production (IIP). The industry has emerged as a significant source for the global market during the last five years. The country has emerged as the third largest global exporter of textiles and apparels in 2014 after China and EU with around 4.5% market share as per WTO data for CY2014.

India's share in global textile and apparel trade

Segmental Overview

Yarn

It is amongst top five yarn manufacturers in India.  The production is approximately 90,000 million tons per annum. Entire yarn capacity id upgraded to value added yarn such as Compact, Melange, Color Melange & P.C.Yarn). 44% of the yarn produced is captively consumed to manufacture value added products. Revenue contributes 33% to total sales.

Fabric

The division is equipped with automatic circular knitting machines that can knit over 27,000 million tons per annum of various kinds of fabric. Its fabric processing unit has a capacity to process over 9,000 million tons per annum. Around 29% captively consumed to manufacture value added products. Revenue contributes 21% to total sales. Major Buyers include Knitted apparel export manufacturers.

Garments

It is the largest garment manufacturer in India . Its garment manufacturing facility has a capacity to produce over 95 million garments per annum. It is a 100% exports division. Revenue from the segments contributes 31% to total sale. Key export markets include Europe, Australia and USA.

KPR MIlls Garment Sales
KPR MIlls Garment Sales

Sugar

K.P.R. Sugar Mill Limited is a wholly owned subsidiary of K.P.R. Mill Limited. It is situated at Almel Village, Sindgi Taluk, Bijapur District, Karnataka, one of the highest sugar recovery area. The Co-gen cum Sugar Mill, equipped with all infrastructures, commenced its commercial production since November 2012 onwards.

Growth Factors

Value addition in yarn to raise profitability: KPR has a capacity of 90,000 MT and 27,000 MT in yarn and fabric segments, respectively. It is gradually converting part of the yarn capacity towards higher margin colored and mélange yarn. KPR is now looking at expanding yarn and fabric capacity. The fabric capacity is likely to be utilized internally given planned garment capacity expansion.

Increased focus on exports: The company is striving for enhanced garment production which is a 100% export business. They are looking Penetrate into newer markets for garments & yarn. They are already receiving impressive response from existing clients and new potential buyers.

Key Competitive Advantage

Self-sufficiency in power: Spinning, weaving and processing are highly power intensive processes. The company has wind power capacity of 61.9MW & Co-gen plant of 30MW. Power cost is a key advantage for KPR Mills as is continuous availability that is crucial to avoiding wastage in the spinning and weaving business.

Vertical Integration: It is the Largest vertically Integrated Apparel Manufacturer. Vertical integration provides multi-faceted advantage to the company ranging such cost synergies and quality assurance.

Strong client base: They have over 1200 Customers for yarn & fabric and have partnerships with around 50 Top International Brands while a few more large customers from existingand new markets on pipe line

Income Statement

KPR MIlls Income Statement

Balance Sheet

KPR Mills Balance Sheet

Cash Flow Statement

KPR Mills Cash flow Statement

Ratio Analysis

KPR MIlls Ratio Analysis

KPR Mills in six charts

KPR Mills Charts