KPR Mill to set up Rs 325 cr integrated sugar mill

Facility in Bijapur district to have 33 Mw co-gen capacity.

Coimbatore-based KPR Mill to diversify into sugar sector by setting up a Rs 325 crore integrated a sugar mill in Bijapur district. The Bombay Stock Exchange-listed company said the new mill will also have a 33 Mw co-generation facility.

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

The capacity of the sugar mill will be 5,000 tonnes per day and will have a co-gen with 34 mega watt capacity. The facility is being set up by KPR Sugar Mill Ltd and is expected to go on stream in the next 12-14 months.

 

“The main idea is to make the group self-sustained when it comes to power,” he said.

Already, the company have wind mills which can produce 61 mega watt of power in various parts of Tamil Nadu, including Tirunelveli, Kanyakumari, Thenkasi and in Coimbatore.

With the additional 34 Mw of co-gen, we can export 25 per cent of the produced, including 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 including 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 steam by October this year,” said Nataraj.

Company’s consolidated revenue grew by 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 by 28.1 per cent to Rs 300 crore during fiscal-ended March 31, 2011.

Europe and US contribute to 80.50 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 we expect this trend to continue over the coming quarters, said K P Ramasamy, chairman, KPR Mill in a letter to company’s shareholders.

In 2011-12, the company intend to continue the growth momentum with the help of expansion completed.

After the completion of the expansion, the total yarn capacity will go upto 353,088 spindles, making KPR one of India’s largest yarn manufacturing companies, said Ramasamy.