KPR Mill to diversify into sugar business

Coimbatore-based KPR Mill plans to diversify into sugar sector by setting up a Rs 325­-crore integrated sugar mill in Bijapur district of Karnataka. The BSE-listed firm said the new mill would also have a 33 MW co-generation facility.

KPR Mill Ltd managing director P Nataraj said that as part of diversification plan, the company was setting up a sugar mill in Karnataka with an investment of Rs 325 crore.

The total capacity of the sugar mill would be 5000 tonnes per day and will also have a co-gen facility of 34 MW capacity. The facility is expected to go on stream in the next 12-14 months. “The idea is to make the group self-sustained when it comes to power,” he said.

 

Already the company has wind mills which can produce 61 MW in Tamil Nadu. "With the additional 34 MW of co-gen, we can sell 25 per cent of the produced power, including from wind mills," he said.

Besides the sugar mill, the company is also expanding its textile manufacturing capacity with an outlay of Rs 550 crore. The investment includes setting up a greenfield facility with a capacity of 25,000-tonne spindles and expanding its existing units.

“The green facility at Karumathamapattai, which will be a 100 compact yarn and melange yarn facilities, is expected to go on full stream by October this year,” said Nataraj.

The company's consolidated revenue grew 33 per cent to Rs 1,109.56 crore in 2010-11, driven by strong traction in sales across all key products segments. Exports grew 28.1 per cent to Rs 300 crore during the fiscal ended March 31, 2011.

Europe and US contribute to 80.5 per cent of key export market. This was led by a strong growth momentum registered in second of the last fiscal in India's apparel exports and is expected to continue over the coming quarters, said K P Ramasamy, chairman, KPR Mill, in a letter to the company's shareholders.

In 2011-12, the company intends to continue the growth momentum with the help of expansion completed. After the completion of the expansion, the total yarn capaciy will go upto 3,53,088 spindles, making KPR one of India's largest yarn manufacturing companies, said Ramasamy.