KPR Mill plans to expand garment facility

K.P.R. Mill, one of the largest vertically integrated textile player, has announced that it is planning to add another 10 million garment capacity leading to a total garment capacity of 115 million.

The company has undertaken this brownfield expansion to cater to the rising demand of its garments. The company is continuously increasing its focus on the garments business. Recently, it has also started commercial production of garments in Ethiopia. The company is the largest knitted garment manufacturer and exports to Europe, Australia and the US.

Looking at the recently concluded quarter Q3FY19, the company has posted growth in revenue and net profit of 8.3 per cent and 18.3 per cent, respectively on YoY basis.

On 9MFY19 basis, the Garment Production increased by 15.84 per cent YoY to 68.66 Million Garments as against 59.27 Million Garments. The company’s product revenue mix stood at Yarn & Fabric (49 per cent), Garments (37 per cent), Sugar (8 per cent) and Others (6 per cent). On the geographical front, it derives 59 per cent revenue from the domestic market and remaining from exports.

On Monday, the stock of KPR Mills opened at Rs. 533.45 per share and made an intraday low of Rs. 518.65 on the BSE. At 14:35 hours, the stock was trading at Rs. 522.75. The stock hit its 52-week high of Rs. 740 on March 1, 2018 and its 52-week low of Rs. 512.95 on January 14, 2019 on the BSE.