### **Overview** K P R Mill Limited is one of India’s largest **vertically integrated textile manufacturers**, operating across the entire value chain from **fibre to fashion**. Headquartered in Tamil Nadu, the company leverages its strategic location near **Tirupur**, Asia’s largest knitwear hub, to optimize supply chain efficiency, reduce logistics costs, and ensure on-time delivery. With over **30,000 employees** and **15 advanced manufacturing units**, KPR serves leading international brands across more than **60 countries**, while also expanding its presence in domestic retail through its **FASO** brand. The company’s operations span **textiles, garments, sugar, ethanol, and renewable energy**, creating a diversified and resilient business model that supports sustainable growth. --- ### **Core Business Segments & Capacities (Latest as of Q3 2025)** | Segment | Capacity (Annual) | Notes | |--------|--------------------|------| | **Cotton Yarn** | 100,000 MT | All capacity upgraded to value-added varieties (Compact, Melange, PC, Slub, Vortex) | | **Viscose Vortex Yarn** | 10,000 MT | Higher-margin, lower volatility due to reduced cotton exposure | | **Fabric** | 40,000 MT | Produced in-house for internal garment manufacturing and third-party sales | | **Fabric Processing** | 30,000 MT | ETP-equipped, using advanced **cold processing technology**; eco-friendly and sustainable | | **Fabric Printing** | 15,000 MT | Can handle 100,000 high-fashion garments/day | | **Knitted Garments** | 177 million units | One of India’s largest producers; exported to top global brands in Europe, US, and Australia | | **Renewable Energy** | 196 MW | Wind: 63 MW, Solar: 40 MW, Co-generation: 93 MW; meets 100% of textile power needs | | **Sugar Plants** | 20,000 TCD | Located in Karnataka | | **Ethanol Plants** | 500 KLPD | Utilizes both molasses and sugar syrup; strategic focus on value-added co-products | --- ### **Vertically Integrated Model: Key Advantages** - **Cost Efficiency**: Full control over production from cotton yarn to finished garments reduces procurement and logistics costs. - **Faster Time-to-Market**: In-house capabilities in spinning, knitting, processing, printing, and garmenting shorten lead times for export customers. - **Quality Control**: End-to-end oversight ensures adherence to international standards and sustainability norms. - **Resilience in Downturns**: Integration insulates margins during volatile periods (e.g., cotton price swings, demand cycles). --- ### **Sustainability & Green Manufacturing** KPR is a leader in sustainable textile production: - Operates one of the largest **Effluent Treatment Plants (ETP)** in its processing unit. - Uses **cold-processing technology** to minimize water and energy consumption. - Generates **196 MW of renewable energy**, fully meeting its captive power needs and achieving **energy neutrality** in textile operations. - Wind power alone supplies **40% of textile energy**, contributing significantly to carbon footprint reduction. --- ### **Diversified Revenue Streams** While textiles remain the core, KPR has strategically diversified: - **Sugar & Ethanol**: High-margin ethanol segment benefits from government-mandated blending policies (E20, E25), favorable loan subsidies, and stable returns from co-generation. - **Retail – FASO Brand**: A 100% **organic cotton** men’s wear brand (innerwear, sportswear, athleisure) launched in 2019–2020, targeting eco-conscious consumers. - Available via 34 distributors, 2,000+ retailers, and e-commerce platforms (Amazon, Myntra, Flipkart, Fynd). - Pan-India expansion underway; initial focus on South India with plans to scale to **10,000–20,000 retailers by 2025**. - Revenue target of **₹100 crores in 2–3 years** from FASO. --- ### **Expansion & Growth Strategy** #### **Textile Segment Expansion** - Invested **₹250 crores** (Feb 2024) to expand **fabric processing and printing capacity** at an existing site. - Processing upgrade: 1–1.5 years timeline. - Garment capacity expansion: 6–8 months. - Expansion strengthens downstream **greenfield garment manufacturing** capabilities. #### **New Customers & Export Growth** - Added **Walmart and GAP** as clients (Feb 2024), expected to generate a **“plus $2 million” business**. - Supplying to **over 55 leading global brands**, primarily from Europe and North America. #### **Geographic & Market Expansion** - Exploring opportunities in **Textile Mega Parks** under plug-and-play government schemes. - Previously operated a **10 million-unit garment facility in Mekelle, Ethiopia**, but operations remain suspended due to ethnic unrest (since late 2020). - Focused on domestic expansion (India) due to stable infrastructure and integrated operations. #### **UK Free Trade Agreement (FTA)** - Anticipated **expansion of addressable market** for cotton-based knitwear if the UK FTA is finalized. - Currently, **15% of garment exports go to the UK**, with majority to EU and Australia. - Strong order book visibility: **Over ₹1,000 crores** as of May 2024. --- ### **Raw Material & Sourcing Strategy** - Primarily uses premium **Shankar-6 cotton** from Gujarat. - Focus on **sustainable cotton sourcing**: - BCI (Better Cotton Initiative) - Organic cotton - CMIA-certified cotton - Dedicated procurement teams monitor cotton markets to mitigate cost volatility from weather, speculation, and global shortages. - Cotton accounts for the **largest input cost**, impacting margins; thus, diversification into viscose (less volatility) is strategic. --- ### **Employee Welfare & Operational Culture** - Unique **employee-centric model** enhances retention and productivity. - On-campus housing, free food, healthcare, yoga, and sponsored higher education. - Over **3,000 employees** pursuing degrees under company sponsorship. - Workforce size: ~30,000 employees. - Maintained **full operations during lockdowns** with no layoffs, ensuring business continuity.