I am pleased to present the 14th Annual Report of K.P.R. Mill Limited. The FinancialYear 2016 -17 has been yet another growth oriented and successful Yearfor KPR. I wish toshare with you some of its highlights:
We grew profits faster than revenue. Effectively managing our business with strongoperational execution delivered profitable growth to our shareholders. The disciplinedfinancial approach resulted in consistent profitsCash Flows and enjoysa well-capitalizedBalance Sheet
As regards the expansion in value added segment I am glad to inform you that
* 36 Mn Newgarment capacity ramp up is progressing as per plan.
* Eco-friendly Processing Unit 2 'commenced its operations.
* Sophisticated high resolution printing division started Commercial operations.
Driving shareholders value
We remain highly focused on superior shareholder value. During fiscal 2017 in order toimprove the liquidity of the shares of the Company's in the stock market and to encouragethe participation of small investors by making the shares affordablethe Equity Shares ofthe Company of Rs. 10/- each was split into Two Equity Shares of Rs. 5/- each. Inaddition with a view to return our free cash flow to the shareholders we resorted tobuyback of shares by giving an option to all the Equity Shareholders to participate inthesame.
Cotton & Power
India is the largest producer 2n" largest exporter and also a leadingconsumer of cotton in the World. Remunerative prices in previous year have encouragedfarmers to grow more cotton. Given the forecast of a normal monsoon India's cotton outputin 2017-18 may also rise. The balanced supply and demand situation will lead to stablecotton prices which may help Indian textile firms in keeping their input costs lower.Therollout of Goods and Services Tax (GST) may also help lower the cost These factors willimprove the earnings outlook for textiles. With the support of captive power KPR has anedge over others in respect of power cost.
Value addition to Human Resource
We always consider that people are the most important asset of an organization.Majority work force of KPR consists of women employees.The value of human assets can beincreased substantially by investing in their welfare activities so as to createefficient healthy loyal and satisfied labour force for the organization.The purpose ofproviding such facilities is to make their work life better and also to raise theirstandard of living. Employee welfare is an essential part of social welfare. Education isone of the most important means of empowering women with the knowledge skills andself-confidence. Acknowledging them as potential human resources investment is made indeveloping their capacity in terms of education skill development through training. As inevery year with the best coaching facilities extended through well experienced full - timeteachers this year also our Employees have completed the higher education with flyingcolors. An employee of KPR who has scored 1123 out of 1200 in the Government's plus twoexaminations says' I would like to become an IAS officer after completing my collegestudies'. She is among the 189 girls from KPR who has successfully passed the exam thisyear. More than 25 employees have scored above 1000 marks. Over 20000 women workers havebeen benefitted so far by the educational facilities. In the Government sponsored skilldevelopment programme around 2000 employees participated during the year. As you areaware the textile industry is labour intensive and our employee care facilities addressour additional workforce requirement with ease.
On CSR front we continue to contribute predominantly on promotion of Education whichplays a vital role in shaping tomorrow's leaders. Not only can we become a better nationbyacquiring the skills necessary to be productive members of a civilized society but alsomeet challenges that can produce changes which are productive for attaining businessinnovationspolitical and economic objectives.
When parents think about their children's future they see collegiate education asvital to their children's success and when saying so they most frequently mean aneducation of high standard. It is with the objective of making high quality educationaffordable to common public we are focusing on the same. Towards augmenting green coverin an ambitious tree planting program the Company has planted more than one lakh saplingsin the villages and our Units.
KPR's visionary plans & dynamic management continues to crown its Management as oneof the 'Top 100 CEO's of India'for the year 2016 successively besides sustained ranking inthe 'List of Top 500 Companies in India'. Overwhelming endorsement and enthused responsefrom the shareholders elevated KPR's market cap to cross $ one Billion and I wish to thankthe Shareholders for their unstinted support.
Globally India has the second-largest integrated textile manufacturing facility. Thetextile and clothing sector is strong in spinning and garmenting segments. In the lastfiscal India's the ready-made garment clothing exports rose 2.31% $17.35 billionin whichalmost 80% are cotton based.Realising thata push in apparel exports can be an engine ofgrowth for the other segments the Government is keen on incentivizing the Garment sector.However the Infrastructure challenges preferential tariffs that neighboring countriesenjoy with EU markets need to be addressed for textile and clothing exports to leapforward.To leverage on the strengths in the spinning and garment segments strengthening ofthe processing and allied segments have become imminent. The strategic expansion implemented in low capital internship Garment and Processing segments self- sufficiency inpower focus on value added products comfortable cash flow are some of the major factorsplacing KPR in a lucrative position to reap the benefits from the bright prospects.
I thank the entire Management for their invaluable team work to achieve the desiredresults. I am thankful to the Board of Directors for their guidance and contribution forthe growth of the Company. I would like to thank our long-term shareholders as well asthose who have joined us recently for their unstinted support and confi!l'nce-With best wishes