Hyderabad: Coimbatore-based KPR Group company KPR Mill, which has recently set up its overseas garment making unit in Ethiopia, is keen to cater to the US and European markets. The company employs about 1,000 people in this unit.
KPR Group managing director P Nataraj told Telangana Today, “For us 70 per cent of the business had been coming from Ethiopia, 20 per cent from the US and the remaining from the South Asian markets. There is a tax advantage operating in Ethiopia as the nation has free trade agreement with many nations. We have already done few shipments to the US from our Ethiopian plant, which was commissioned during January this year. We are ramping up capacities now and expect to achieve full capacity by the end of 2019.”
He informed, “We had been exporting to 63 countries through our 12 manufacturing facilities that we operate from Tamil Nadu. We have an entire value chain from spinning to garments. We have a yarn capacity of 3 lakh kilos per day, garment capacity to make 4 lakh pieces per day, fabric capacity of 75,000 kilos per day, and processing (dyeing and bleaching) capacity of 70,000 kilos per day. We have invested around Rs 3,000 crore in these 12 facilities. We have built a strong R&D team over the years and have a total workforce of 24,000 employees.”
KPR Group, which has interests in power, automobile and sugar has a turnover of Rs 4,000 crore, and expects growth at a rate of 25 per cent year-on-year in the next two fiscals. The group’s 40 per cent of the turnover comes from textiles business.
E K Sakthivel, ED, KPR Group, said, “We are introducing innerwear and athlesire garments under the brand Faso for the Indian market. We are starting with men’s wear now. After launching them in Tamil Nadu and Kerala, we are introducing our products in Telangana and Andhra Pradesh. We will go pan-India by 2020. In 2021, we will launch women’s wear products followed by kids wear in the following year.”
The company is utilising a capex of Rs 400 crore this fiscal. KPR Mill is keen to consolidate its position before adding more greenfield facilities. Nataraj added, “KPR Mill will explore more greenfield facilities across India. We have interacted with several State governments including Telangana. We will consider the location based on the incentives, policies, taxation and labour laws. We are yet to finalise any location.”
The group has created 93 MW of power generation capacity for captive purposes to meet the needs of the textile units spread over Tamil Nadu in and around Coimbatore.