Significant processing capacity expansion
KPR recently commissioned its large greenfield garment manufacturing facility with a capacity to produce 36 million garments per annum under one roof. With this new plant, the company has expanded its garment capacity to 95 million garments per annum, with the scope to emerge the largest garment manufacturer in India. Ramping up of capacity will take place in the current financial year.
KPR, a vertically integrated textile company, is entering its next phase of growth. It is one of the largest vertically integrated textile players with presence across the entire value chain, from “fibre to fashion”. It clocked a turnover of Rs. 2,591 crores during 2015-16.
KPR is among the top five yarn manufacturers in the country. It recently invested in value addition, converting conventional yarn into value-added yarn, namely, compact, melange, color melange & P.C. yarn. Currently 31 per cent of the yarn produced is consumed captively. Yarn sales contribute to 42 per cent of its total turnover, which fabric sales contribute to 18 per cent of turnover. The company consumes 19 per cent of fabric manufactured towards value-added products.
Enthused by the impressive growth trend in apparel sector, KPR has made significant investments in garment manufacturing capacity. The company primarily manufactures knitted garments and exports 100 per cent of its output to key markets like Europe, Australia and the US. KPR is also exploring new markets. Currently the garment business contributes to 24 per cent of the total turnover.
KPR is backed by strong fundamentals. It has rich exposure in the textile and apparel industry and has been performing well, even during tough times. It is the largest vertically integrated apparel manufacturer strategically located near Tirupur, the largest apparel manufacturing cluster in Asia.
KPR uses ‘Shankar 6’, the best in quality cotton, as the raw material for consistent quality. The company has established strong relationships with about 1,200 regular domestic clients for yarn and fabric and around 50 leading international brands for garments. The company’s quality initiatives and consistent technology upgradation have secured several international customers and orders, as well as new clients across many new markets. The order book position and response from the existing and prospective clients is promising indeed.
Green power
KPR has made strategic investments in wind power projects and the co-gen plant for captive consumption and has been to maintain power cost through investment in green power. KPR currently has 61.92 mw of wind power & 30 mw Co-Gen which ensures green power availability throughout the year. KPR has also installed a massive ETP plant in its processing unit to treat 2.5 million litres a day.
Processing
KPR has recently announced significant capacity expansion in its processing facility with advanced cold processing technology to meet its additional requirement. The advanced continuous process technology helps in minimizing the cost of production, as it eliminates salt usage in process, as also water and energy consumption. The technology ensures safe processing of delicate and sensitive fabrics with minimal interruption through rotary screen printing. Besides ensuring improved quality and higher color uniformity, it will also help the company have 100% capacity addition, from 25 MT to 50 MT per day.
The estimated project cost of Rs. 120 crores will be funded through internal accruals and debt. Expected to be completed in nine months, the project is eligible for capital subsidy under the Amended TUF Scheme.
With the doubling of the processing capacity the company expects to have bigger overseas customers, besides widening its current client base.
Manufacturing capacity
Yarn 90,000 MT
Fabric 27,000 MT
Garments 95 million Garments
Processing 9,000 MT
Windmills 61.92 MW
Co-gen & Sugar 30 MW & 5,000 TCD