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KPR Mills forays into compact yarn production
03 Jan '11
4 min read
The capacity addition is taking place adjacent to the existing plant in Karumathampatti in order to achieve cost and location benefits. The expansion is expected to be completed by the end of June 2011 in a phased manner. The Company has also adopted a strategic approach to meet the energy needs of its expansion by investing in captive wind energy generation with a capacity of 22 MW to meet its power requirements at an estimated cost of Rs 1.28 billion. The windmill expansion is expected to be completed by the end of January 2011.
Speaking about their modernization plans, he said, “To achieve greater productivity; increased efficiency and improved quality, it has also been decided to modernize the existing 30,240 spindles at our maiden spinning unit at Sathyamangalam. The existing ring frames will be replaced with new machines that yield better productivity, along with which we are adding 17,952 spindles of the recently launched LR9/AX 1632 machine, with cutting edge technologies that ensures best quality.
“The plan for expansion at the existing unit will reduce the per spindle cost considerably since no additional cost towards civil construction, infrastructures, managerial personnel etc, will be incurred. The total outlay of the aforesaid project is around Rs 400 million, for which too, financial closure with bank has been established.
“KPR Mill's integrated textile business model, economies of scale, quality control, self sufficiency in power, high productivity, diversified customer base, increasing margins and subsequent expansion coupled with the future bright prospects of the textile industry give strong visibility to revenue and profitability growth going forward”, he wrapped up by saying.
He further observed that, the term loan components in both the above financial closures are entitled for TUF subsidy, since they were sanctioned before the suspension of TUFs.
Speaking about their modernization plans, he said, “To achieve greater productivity; increased efficiency and improved quality, it has also been decided to modernize the existing 30,240 spindles at our maiden spinning unit at Sathyamangalam. The existing ring frames will be replaced with new machines that yield better productivity, along with which we are adding 17,952 spindles of the recently launched LR9/AX 1632 machine, with cutting edge technologies that ensures best quality.
“The plan for expansion at the existing unit will reduce the per spindle cost considerably since no additional cost towards civil construction, infrastructures, managerial personnel etc, will be incurred. The total outlay of the aforesaid project is around Rs 400 million, for which too, financial closure with bank has been established.
“KPR Mill's integrated textile business model, economies of scale, quality control, self sufficiency in power, high productivity, diversified customer base, increasing margins and subsequent expansion coupled with the future bright prospects of the textile industry give strong visibility to revenue and profitability growth going forward”, he wrapped up by saying.
He further observed that, the term loan components in both the above financial closures are entitled for TUF subsidy, since they were sanctioned before the suspension of TUFs.
Fibre2fashion News Desk - India
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