The Hindu Business Line : KPR Mill’s phase-I completion soon

Coimbatore, Feb. 4 KPR Mill, the integrated textile company which is doubling capacities in yarn, fabric and garment productions under phase-one expansion, with an outlay of Rs 517 crore, will have the expansion work completed by the end of the current fiscal.

The phase-I capacity expansion involves a new composite spinning and garment production facility at Arasur with a one lakh spindle yarn making unit that will lift KPR’s cumulative spindleage to 2.12 lakh to produce 54,000 tonnes of yarn annually, a greenfield fabric processing facility at Perundurai with 23 tonnes per day capacity and addition of 12 wind mills of 19.8 MW capacity, besides modernising its existing spinning mill at Sathyamangalam.

The expansion will contribute to increasing its fabric production from 17,200 tonnes and its garment production to 37.9 million pieces per annum.

The company has also initiated second phase expansion work (post IPO) at a cost of Rs 121.9 crore to enhance garment production facilities at its Arasur plant. The Arasur garment unit will be expanded with balancing machinery and additional hostel for workers to facilitate double shift operation from the year 2009 which will increase the garment production at the unit from 25 million pieces to 51.8 million pieces.

According to a communication from the company, phase two expansion will also include adding a design studio for garment operations, a new knitting facility at Arasur plant, doubling the capacity of the processing division from 23 tonnes to 46 tonnes a day and a compact spinning facility for value-added yarn production.

Mr P. Nataraj, Managing Director of KPR Mill, said in a communication, that the benefit of the expansion of the millwill start reflecting in the mills performance in the coming quarters as it will touch on the entire production value chain. KPR Mill’s turnover for the quarter ended December 31, 2007 rose by 30 per cent to Rs 158 crore, from Rs 121.9 crore for the same period in 2006. Its net profit for the third quarter went up by 8 per cent to Rs 14.7 crore as against Rs 13.6 crore.

The company has posted a net income of Rs 436.8 crore for the first nine months of operation in 2007-08, a rise of 23.4 per cent over the Rs 354.16-crore income during the same period in 2006-07 fiscal.

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