KPRMILL

_______ K.P.R. MILL LIMITED_______ Corporate Office : 1st Floor Srivari Shrimat, 1045, Avinashi Road, Coimbatore - 641018. India © : 0422-2207777 Fax : 0422-2207778 29.07.2021 The Listing Department The Listing Department Bombay Stock Exchange Ltd National Stock Exchange of India Ltd 1st Floor, Rotunda Buildings, Exchange Plaza, Plot: C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 SCRIP CODE: 532889 SYMBOL: KPRMILL Dear Sir, Sub: Investor Presentation for the Quarter ended 30.06.2021 Ref: Disclosure of Material Events Pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Investor Presentation for the Quarter ended 30th June, 2021 is uploaded in our Company website www.kprmilllimited.com and being filed with the exchanges. This is for your kind information and dissemination. Thanking you, Yours faithfully For K.P.R. Mill Limited Company Secretary Encl: As above Regd. Office : No. 9, Gokul Buildings, A.K.S. Nagar, Thadagam Road, Coimbatore ■ 641 001. © : 0422-2478090, Fax : 0422-2478050 GSTIN : 33AACCK0893N1Z9 Email : corporate@kprmill.com Web : www.kprmilllimited.com CIN : L17111TZ2003PLC010518 Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by KPR Mill Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the textile industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2 Manufacturing Facilities Sathyamangalam Spinning Yarn : 1,00,000 MT Viscose Yarn : 4,000MT Spinning, Compact , P.C, Melange , Karumathampatti Color Melange and Knitting Spinning, Knitting Fabric : Neelambur and Vortex-Viscose yarn 40,000 MT u Arasur Spinning, Knitting & Garmenting d a Garments : N l Tirupur Garmenting 115 million Garments i m a T Thekkalur Garmenting, Processing : Printing & Embroidery 25,000 MT Fabric Printing : Processing & Perundurai Fabric Printing 7500 MT Tirunelveli, Tenkasi, Theni Windmills: Windmills & Coimbatore 61.92 MW Co-gen & Sugar : Mekelle, Ethiopia Garmenting 40 MW & 10,000 TCD Bijapur, Karnataka Co-gen cum Sugar and Ethanol 130 KLPD 3 An Overview  One of the largest vertically integrated textile player with presence across the entire value chain - from “fibre to fashion”  Best quality cotton ‘Shankar 6’ used as the raw material for consistent quality  Strategic investment in Wind Power Projects & Co-gen plant for captive consumption  Marquee relationships with more than 1,200 regular domestic clients for yarn and fabric and around 60 Countries for garments  Trendsetting welfare policies including higher education facilities for employees & various CSR activities  An exemplary and massive ETP in its Processing Unit to treat 5 Million litres a day  Quality initiatives and consistent technology upgradation secured several International Accreditations  With 115 million Knitted Garments capacity, KPR has become one of the largest Apparel Manufacturers in India. Establishment of New Garment facility with 42 Million knitted garments per annum is in progress.  Expansion of Sugar, Co-gen and Ethanol production capacity with 10,000 TCD, 47 MW and 230 KLPD is in progress  Eco-friendly Processing facility and sophisticated high resolution printing facility  Retail segment - ‘FASO’ - 100% Organic Cotton Men’s innerwear Sportswear and Athleisure  To enlarge export activities established a Company at Singapore 4 Presence across the textile value chain Fabric • A largest Knitted garment • One of the largest yarn manufacturer manufacturers in India •Revenue contributes 41% to •Entire yarn capacity upgraded •Revenue contributes 2% total sales to value added yarn(Compact, to total sales Melange, Color Melange, PC, •Exporting to over 60 Countries Slub, Grindle & Vortex yarn) •Around 83% captively •Key export markets - Europe, consumed to •25% captively consumed to Australia & USA. manufacture value manufacture value added added products. •Retail segment : Products • Major Buyers - ‘FASO’ – 100% Organic Cotton • Revenue contributes 41% to Knitted Apparel Export Men’s wear total sales Manufacturers Knitted Yarn Garments Domestic Sales – 58%; Exports – 42% 5 Key competitive advantages Strong Fundamentals • Rich exposure in textile and apparel Industry • Consistent better performer even during tough times and growth driven entity • Dividend track record since listing Largest vertically Integrated Apparel Manufacturer strategically located • Assuring superior quality products meeting market requirement • On time delivery – An essential factor for market reputation • Facilities located within a 50 KM radius of Tirupur, the largest apparel manufacturing cluster in Asia • Proximity to buyers helps to reduce the material handling costs and facilitates immediate feedback • Utilize the key technical personnel across all plant sites Strategic Investment in Green Power • Ability to maintain power cost through investment in Green Power • 61.92 MW Wind Power & 40 MW Co-Gen • Green power availability throughout the year Competitive cost • Low power cost through captive green power • Minimal finance cost through prudent financial planning 6 Key competitive advantages Contd… Rejoiced Workforce • Feel at home accommodation and amenities including Higher Education, Vocational training, yoga, meditation, library, sports, swimming pool, etc. • The trendsetting welfare factors crowned by Five Star Certification &Higher Education facilities at KPR distinguishes it from Peer Group with higher efficiency level and lower attrition rate facilitating enhanced Productivity at optimized Operating cost • During Covid-19, KPR employees stayed back acknowledging KPR’s parental care, though the industry faced return of migrant employees to home town Strong client base • More than 1,200 Customers for yarn & fabric • Leading International Brands • Exporting to over 60 Countries Growth Initiatives • Converted conventional yarn capacity to value added yarn, carrying premium prices • Expanded garment capacity to 115 million garments per annum – Making KPR a largest Knitted garment manufacturer in India. Establishment of New garment facility with 42 million knitted garments per annum is in progress • Expansion of Sugar, Co-gen and Ethanol production capacity with 10,000 TCD, 47 MW and 230 KLPD is in progress • Eco-friendly Processing facility and sophisticated high resolution printing facility • Company at Singapore-To enlarge Export business • Retail segment - ‘FASO’ - 100% Organic Cotton Men’s innerwear, Sportswear and Athleisure 7 Key Growth drivers of Indian Textile Industry INDUSTRY GROWTH DRIVERS COMPANY SPECIFIC GROWTH DRIVERS  Consistent Modernization & Capacity Expansion –enhanced  Most cost competitive Textile manufacture base realization  Value Added Yarn - Compact, Melange, PC, Colour Melange,  Largest Cotton base – Number one in World Slub, Grindle and Vortex Yarn– Volume Driven Growth  Most efficient Spinning sector in the World  A largest Knitted garment manufacturer with 115 mn garment capacity. Establishment of New garment facility with 42 mn  Growing Domestic & Global demand garments per annum is in progress.  Challenges of growth in neighboring competing  Expansion of sugar, Co-gen and Ethanol production capacity with 10,000 TCD, 47 MW and 230 KLPD is in progress countries driving the Indian textile Industry  Eco-friendly Processing facility and sophisticated high  India has an edge over other major competitors in resolution printing facility. Asia in respect of raw materials.  Self sufficiency in power generation  Increased focus on exports – Enhanced garment production – Penetrate into newer markets for garments & yarn – Impressive response from existing clients, new buyers and new market  Company at Singapore-To enlarge Export business  Retail segment - ‘FASO’ 100% organic Cotton Men’s wear. 8 Evolution 2006 – Private Equity participation by leading US Corporate ‘Brandot Investments’ 2001 – Spinning mill at & Two others - $ 25 Mn Karumathampatti with 30,240 spindles; Knitting facility & Wind 2007 – IPO at a premium. mill for captive use Shares Listed at Bombay & 2003 – Spinning unit at National Stock Exchanges, India Neelambur with 50,784 spindles; 1984 – Maiden business 2008 – Fabric Processing Unit at Knitting facility & Wind mill at Coimbatore, India SIPCOT, Perundurai 9,000 MT 1989 – Knitted garment 2005 – At Arasur 1,00,800 per annum with trendsetter export at Tirupur. Effluent Treatment Plant spindles; Knitting facility, Garment Unit of 26 Million 1995 – First spinning unit garments and Wind Mills at Sathyamangalam with 6,000 spindles. 2006-2009 Increased to 30,240 spindles by 1999 2000-2005 1984-1999 9 Evolution Contd… 2014 - Expanded Garment capacity at Arasur by 10 Mn garments, 2012 – Another Value added product Melange 2015 - New green field 2010 – Exclusive value yarn. 16,608 spindles at Garment capacity at added Compact Spinning Karumathampatti. Thekkalur with 12 Mn unit of 1,03,680 spindles at garments Karumathampatti & Wind  2012 - Co-gen cum Sugar Mills Plant at Karnataka - 30 MW & 5000 TCD capacity 2011 – Modernization & expansion of 21,216 2014-15 spindles at Sathyamangalam 2012-13 2010-11 10 Evolution Contd… 2018 – Established 10 Million Garment manufacturing unit at Mekelle, Ethiopia 2016 – Established New green field garment facility of 36 Mn 2019 – Increased Processing garments at Thekkalur capacity by 4000 MT 2017 – Established new Eco- 2019 – Brown field garment friendly Processing capacity expansion by 10 Mn garments with Advanced Technology – in existing facilities 9000 MT. Established Sophisticated high resolution printing division – 7500 MT 2018-19 2016-17 11 Evolution Contd… 2020 – Knitting facility of 13000 MT at karumathampatti 2019 – Set up 130 KLPD Ethanol Plant along with 10 MW 2020 – Vortex Viscose Yarn Co-gen power capacity of 4000 MT at Neelambur 2019 –Retail segment : ‘FASO’ 100% Organic Cotton Men’s inner 2021 Processing unit wear Sports wear and Athleisure modernization - Capacity increase 3000 TPA 2019 - To enlarge export activities in Asia, established a Wholly owned Subsidiary Company at Singapore 2020-21 2019 12 ' ■ Q1FY22 Revenue at ' 940.61 Crores compared to Q1FY21 Revenue at 547.23 Crores ' ■ Q1FY22 EBITDA at ' 261.59 Crores compared to Q1FY21 EBITDA at 127.13 Crores ' ■ Q1FY22 PBT at ' 224.88 Crores compared to Q1FY21 PBT at 79.25 Crores ' ■ Q1FY22 PAT at ' 168.07 Crores compared to Q1FY21 PAT at 60.30 Crores ■ Q1FY22 Garments Production at 26.63 Million compared to Q1FY21 garments Production at 14.73 Million ■ New expansion projects of 42 Million capacity Garments factory and Sugar cum Ethanol plant are in progress ■ To improve liquidity and broad base small investors, subdividing Rs.5/- paid up share into 5 shares of Rs.1/- each fully paid up 13 Consolidated P&L ` Crore Q1 FY22 Q1FY20 YoY % FY2021 FY2020 YoY Revenue 940.61 547.23 71.9% 3568.99 3389.09 5.3% Raw Material 479.70 286.83 1962.93 1987.19 Employee Expenses 105.89 76.22 393.68 394.40 Other Expenses 93.43 57.05 343.98 349.09 EBITDA 261.59 127.13 105.8% 868.40 658.41 31.9% EBITDA Margin 27.8% 23.2% 24.3% 19.4% Interest & Finance 5.34 9.29 32.84 49.65 Charges Depreciation 31.37 38.59 146.70 137.09 PBT 224.88 79.25 688.86 471.67 Tax 56.81 18.95 173.60 94.99 PAT 168.07 60.30 178.7% 515.26 376.68 36.8% PAT Margin 17.9% 11.0% 14.4% 11.1% 14 Self sufficiency in Power with 102 MW Green Power portfolio Strategic Investment in Wind Power Project 61.92 MW  One of the largest Captive power generators in Textile Industry  Invested in eco-friendly Wind Mills at Tirunelveli, Tenkasi, Theni & Coimbatore Districts in Tamil Nadu, India  Total Wind Power Capacity 61.92 MW  60% of Textile power requirement met through wind power Investments in Co-Gen Power Project 40 MW  Invested in 40 MW Co-Gen Power Project  With Co-gen Power, KPR attained self sufficiency in meeting its substantial power requirement throughout the year 15 Segment Wise Revenue contribution ` in Crore Yarn & Fabric Garments Sugar Others Q1FY22 380 380 111 33 FY 21 1,514 1,385 496 135 FY 20 1,416 1,413 341 183 FY 19 1,611 1,341 252 180 16 Geographical Split Domestic Sales Exports 35% 35% 35% 42% 65% 65% 65% 58% FY21 FY21 FY21 Q1FY22 17 Historical Performance Yarn & Fabric Sales [MT] Garment Sales [No. of Garments in Lacs] 936 980 928 74,970 71,965 66,526 68,080 764 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 Yarn & Fabric Sales [` Crore] Garment Sales [` Crore] 1559 1611 1514 1,341 1,413 1,385 1416 1,006 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 18 Profit distributed to Share Holders Particulars FY 18 FY19 FY20 FY21 Q1 FY22 Profit After Tax - ` Crores 290.38 334.87 376.68 515.26 168.07 - Buyback - ` Crores 108.13 263.31 -- -- -- - Dividend - ` Crores 6.54 6.54 36.27 30.96 -- * - Dividend % 15 15 90 90 * Final Dividend 15% subject to approval of Share holders at AGM 19 For further information, please contact: Company : KPR Mill Limited CIN - L17111TZ2003PLC010518 Mr. PL Murugappan, CFO murugappan@kprmill.com www.kprmilllimited.com 21