KPR Mills moves in top gear to set up composite mill
01 Jul '06
2 min read
KPR Mills plans to pump in Rs.450-crores in the current financial year in order to augment its production capacity and meet escalating demand for cotton yarns and garments.
The company plans to set up a composite mill with a capacity of 1,00,000 spindles and an open-end spinning division of 4,000 rotors at an investment of Rs.370 crores at Arasur, to be operational from May 2007.
It would help the company to manufacture knitted garments at the rate of 2 crore pieces per year.
KPR Mills has sought two US-based private equity firms and are expected to pluck 10 percent stake in the company. Company's capacity building plan includes a processing plant at the Sipcot Industrial Estate near Perundurai, Erode, with a capacity of 20 tons a day.
The unit will become operational by September 2006 as soon as installation of 1,000 sewing machines imported from Germany and Japan is accomplished.
KPR group is involved in spinning, weaving and knitted garment segments and is focusing on creating a brand image for its products.
The company exports 100 percent of its garments to the European nations and international companies like Gap, Wal-Mart, Carrefour and JC Pennyand are looking forward to supplying to the US after the completion of expansion activities.
It already has a sales-cum-marketing office in Hamburg, Germany, and is planning to open another office in London.
KPR anticipates fetching Rs.200 crores thisfiscal year on the export front as against Rs.127 crores last year.
marketing@alchempro.com
