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Company Profile

It was 1984 in a small South Indian town by a young man, was established a tiny textile business, venturing into an uncharted territory. He was K P Ramasamy, the Chairman and Founder of KPR Mill Ltd. His brothers, K P D Sigamani and P Nataraj, joined the endeavor after him and worked diligently with him. The business began producing stylish clothing in 1989 and established a name for itself in the booming export industry. In Tamil Nadu, these facilities can be found in Coimbatore, Sathyamangalam, Perundurai, and Tirupur. Today, KPR Mill is a powerful conglomerate that has achieved the status of one of the top 500 listed corporations, and its CEO is ranked among India’s top 100 corporate leaders.KPR Mill currently produces and sells cotton yarn, melange and compact yarn, knitted fabrics, ready-made knitted clothing, and sugar.

Garments Industry in India

•  India is one of the world’s leading manufacturers of clothing. From fiber, yarn, and fabric to clothing with a high level of worldwide appeal, Indian textiles and apparel goods have a long tradition of exquisite craftsmanship along the whole value chain. Cotton, silk, and denim products from India are very well-liked abroad, and Indian clothing has also achieved popularity in international fashion hubs. With the largest acreage of 12.5 million hectares, or 38% of the world’s total area under cotton cultivation, India is one of the biggest producers and consumers of cotton. 
• The size of the Indian textile and clothing market is predicted to reach US$ 387.3 billion by 2028, with a compound annual growth rate (CAGR) of 14.59% from US$ 172.3 billion in 2022. One of the largest contributors to the economy is the garment industry, which accounts for 2.3% of the GDP, or over US$70 billion. With 45 million direct employees and 100 million in the related industry, it is also the second-largest employer after agriculture. The leading Indian states for textile and apparel production are Andhra Pradesh, Telangana, Haryana, Jharkhand, and Gujarat.
•   With a vast raw material and manufacturing base, India ranks sixth globally in terms of textile and apparel product exports. In 2022–2023, textiles and apparel accounted for 8.0% of India’s total exports, while the country’s share of the global textile and apparel trade was 5%. India recorded the highest-ever exports of textiles and apparel (T&A), including handicrafts, at US$35.58 billion in FY23, despite previously unheard-of logistical challenges. 
• The government wants to export $100 billion by 2030 and $600 billion by 2047, while the domestic textile market is valued at US$1.8 trillion. The Ministry of Textiles established the plan for reaching this production and export goal in its Vision 2047 Vikshit Bharat. 

•  The greatest international textile festival in India with a unified Farm to Fashion theme, Bharat Tex 2024, took place in New Delhi in February 2024 and was inspired by Prime Minister Mr. Narendra Modi’s 5F Vision. Indian and international participants, including leading brands and merchants, responded in forceful numbers to the four-day event. With assistance from the Ministry of Textiles, a group of eleven Textile Export Promotion Councils organized the massive event. Attracting more than 3,500 exhibitors, 3,000 buyers from 111 countries, and more than one lakh trade visitors, the event was centered around commerce, investment, and sustainability. The festival, which took place at two locations, Bharat Mandapam and Yashobhoomi, and covered almost

2 million square feet, showcased the whole textile value chain with highlights including Vastra Katha, an artistically curated textile narrative. Multiple Memorandum of Understandings (MoUs) were signed during the event.

Company Perspective and Review

•   The significant rise in reserves over the years highlights the company’s strong profitability and internal accruals, indicating a well-managed business. The reduction in both long-term and short-term borrowings reflects KPR Mill’s improving debt position, reducing financial leverage and risk. The surge in non-current investments suggests KPR Mill is focusing on expanding its investments, possibly to diversify its portfolio or expand operations. 
•  This balance sheet shows that KPR Mill is in a robust financial position with healthy equity growth, reduced debt, and strategic investments in both assets and working capital. The company has effectively reduced its expenses, especially raw material costs, leading to improved cost control. 
•  Overall, KPR Mill continues to show robust profitability and financial strength, with growth in reserves and profitability compared to pre-pandemic years (FY 2020). However, the decline in revenue for FY 2024 compared to FY 2023 suggests some challenges in the operating environment. The company has consistently declared dividend over the years.