It gives me immense pleasure to share with you all that substantiating its strengtheven during tough times KPR could sustain the better performance trend. We have deliveredgrowth despite complex economic scenario caused by the Pandemic. Our growth during theyear was propelled by the encouraging demand for the products from all segments. Weregistered a highest ever revenue and profit during the year Total revenue of Rs. 3569Crores PBT of Rs. 689 Crores and a PAT of Rs. 515 Crores - notwithstanding thechallenges. The concerted efforts of entire KPR Team and the support of all stakeholdersmade this possible.
The Cotton prices remained stable for most part of the period. India continues to be acotton surplus Country and the Global cotton harvest area as well production is alsoreported to have gone up in 2021. Cotton yam prices in India have been increasing becauseof dried-up inventories as supplies have failed to match demand and in line with theincrease in Cotton prices. Still Indian yam prices continue to be lower thaninternational prices. The sustained quality and prompt delivery continue to enable KPR toattract more Garment orders from the customers whose activities revived after relaxations.The Employees' responsible attitude during pandemic prompted by KPR's exemplary employeewelfare practices has enabled improved productivity even during pandemic proving KPR'sunique competence. KPR's success and growth are shaped by its strengths that givescompetitive advantage over others. This enabled prompt execution of orders with thebacking of our excellent infrastructures dynamic management and dedicated workforce.Sugar & Ethanol business adds both revenue and profitability. Gauging market demand wehave mooted our expansion plans in the segments of Garment and Sugar cum Ethanol.
However the sudden surge in the second wave of pandemic is posing challenges to theGovernment that has been administering the vaccination drive. New restrictions wereimplemented which are likely to temporarily impede Nation's growth. But its spread shouldbe contained by adopting all means by the Government and the responsible support from thePublic is essential. The market's big hope is on the vaccination drive and on the strongfestive season. Also the fact that mast countries with resources are coming to India'shelp has boosted sentiment. The absence of a nationwide lockdown and the limited impact oflockdowns announced by the Stales have reduced anxiety. We also appeal to everyone tostrictly observe and adapt all safely measures to contain the impact of the pandemic byall possible means.
The recently added latest technology vortex machine produces various blends and rangeof value added viscose yarn that creates new wave of fashion. The new advanced technologyknitting facility housing the contemporary imparted knitting machines is adding value tothe production facilities.
Expansion in the production capacities of Garment and Sugar Co-gen & Ethanolthrough our wholly owned Subsidiary 'KPR Sugar and Apparels Limited are in progress.
KPR EXPORTS PLC ETHIOPIA
Concern is mounting about the devastating effects of the ethnic conflict raging inTigray Ethiopia since November 2020. Attracted by the various incentives offered by itsGovernment many Garment manufacturing Units were established by various Countries inEthiopia. The sudden political conflict erupted therein had constrained thoseManufacturing Units to terminate their activities considering the safety and security ofits Labour and investment. With no reprieve in sight we may also have to withdraw ourgarment activities from Ethiopia for which we are closely monitoring the situation withcaution.
The retail Brand FASO launched throughout southern part of the nation has beenwell accepted as per the preliminary feedback from the Markets. Considering the emergenceof second wave of pandemic we are cautiously and prudently planning its reach at RanIndia level. We earnestly hope that the unique characters of FASO such as 100% OrganicCotton ultra soft comfort and skin friendliness shall mark its presence in the Menswearmarket after its full fledged launch.
OUR WORK FORCE - THE GREATEST ASSET
The COVID-19 pandemic is first and foremost a human tragedy that has played out acrossthe globe. People have experienced unprecedented levels of disruption in their homes andcommunities as well as in their work. If there is a silver lining in all of this it'sthat organizations and leaders are stepping up in critical areas to mitigate the impacts.This is haw KPR has appmached the whale issue. Rebuilt the employees' confidence level byprotecting their health and well being; boasted their morale by addressing their safelyand financial security concerns; continued entire HR facilities despite closure ofproduction activities. This unique employee care entailed the migrant work force employedwith us to respond positively breaking the urge to return to native places by staying withus at our Factories.
KPR Mill's education initiative for women employees continues to yield excellentresults. As a part of the initiative and unique attempt last year we selected 52employees to undergo 'Placement training'. Extending all facilities like foodaccommodation books and other infrastructures at College premises they were givenspecial training on different life skills so as to make them Industry ready and empowerthem to meet the needs and expectations of the leading Recruiters. The training programlasted for about 45 days. We are glad to report that in the veiy first year of ouroutstanding attempt itself out of 52 Employees trained by us 45 got placement in variousreputed companies. This unique service in the interest of the work force which none otherCompanies in the Industry might have ever tried would not only uplift the employees'families but the Society as a whole. By up-skilling the employees to secure placements atother reputed firms without confining them to our own entity; KPR feels proud to havegone one step ahead of others in fulfilling the societal obligation.
We are happy to share with you all the consistent achievement by the candidates of ourKPR IAS ACADEMY in 2019 Civil Services Examination also. Out of 52 candidates appeared 24Candidates have passed (around 50%).
While Indian manufacturers have more or less mastered the skill of exportingcotton-based apparel a high market potential awaits Indian apparel manufacturers. TheIndian apparel companies are expected to achieve double-digit growth in the financial year2022 however on a low base. The Government of India has also realized the importance ofsupporting this segment.
The Union Budget announcement to launch Seven mega textile parks in three years (Twoparks in Tamilnadu) to enable the textile industry to attract large investmentsemployment generation and become globally competitive is really a significant boost tothe Indian textiles sector. This scheme is expected to create world class infrastructurewith plug-and-play facilities to enable and create global champions in exports. With thelarge international buyers already looking at increasing their sourcing from India theformation of textile parks helps India gather a bigger share of the apparel and textileexport trade. Details are awaited from the Government.
Global concern about the immediate and long-term impact of pandemic is now increasingat a rapid pace. The subject is of significance for all since it impacts not just ourlives but that of the future generation. The issue therefore needs to be addressed withutmost priority and collectively with the active participation of all the stakeholdersincluding businesses governments and organisations as also the people. Strengthened byhealthy infrastructure and skilled labour force our performance continues to be good andthe prospects are bright. We always believe that our hard work team effort commitment tosocial sustainability have created a strong presence in the markets that will drive thegrowth in the year ahead.
I am grateful to the entire Management for their invaluable team work rising to thischallenge and ensuring business continuity focusing on progress. I am thankful to theBoard of Directors for their guidance towards the growth of the Company. I would like tothank our Bankers Shareholders and all Stakeholders for their continued support andconfidence.
With best wishes ICP.Ramasamy