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Repro India
Fundamental view
• KPR Mills is one of the largest textile players in India with a presence across the entire value chain from “Fibre
to Fashion”. The company started operations in 1984 and entered into garment exports in 1989. It has a
diversified client base of ~ 1000 domestic clients for yarn and fabric and ~ 40 international brands for the
garments business. KPR exports its products to marquee international customers like Marks and Spencer’s,
Carrefour, Walmart, Kiabi with exports forming ~ 28% of the total FY14 turnover of | 2381 crore
• Global textile trade is expected to increase from US$ 750 Bn in 2012 to US$ 1150 Bn in 2020 with Indian textile
market expected to increase from US$ 87 Bn to US$ 200 Bn. In 2013 India has emerged as the second largest
garment exporter and Indian textile exporters have geared up to widen their production base. To benefit from
the increased demand KPR has initiated plans to expand its garmenting capacity by adding further capacity of
10 Mn garments at its existing capacity which would take the total garment capacity to 40 Mn pieces per
annum. KPR is also setting up a new garment capacity of 12 Mn pieces at Thekkalur near Tirupur which is
expected to become operational during Q4FY15 and would take the total garmenting capacity to 52 Mn pieces.
The company has also set up a wind power capacity of 61.9 MW, which currently satisfies 75% of the
company’s power requirement. The company has also set up a 30 MW co-generation power plant which
would lead to entire power needs of the company being met captively at a lower cost. The dual initiatives of
self sufficiency in power and expansion of garmenting capacity should help the company to improve its
profitability and return ratios going ahead
• KPR’s revenues have grown at a CAGR of 31% in FY10-14, while net profit has grown at a CAGR of 30%. The
company has done a capex of ~ 1000 crore over last four years but has been able to maintain a moderate debt
equity ratio at 1.2x. Over the next few years the company’s operating margin is expected to improve on
account of lower cost of power due to captive generation of power and higher proportion of revenues from
the garment division. The company appears well placed to benefit from the improved demand scenario and
would be able to improve its profitability and return ratios owing to the strategic initiatives taken in the last two
years
KPR Mills
Fundamental view
• KPR Mills is one of the largest textile players in India with a presence across the entire value chain from “Fibre
to Fashion”. The company started operations in 1984 and entered into garment exports in 1989. It has a
diversified client base of ~ 1000 domestic clients for yarn and fabric and ~ 40 international brands for the
garments business. KPR exports its products to marquee international customers like Marks and Spencer’s,
Carrefour, Walmart, Kiabi with exports forming ~ 28% of the total FY14 turnover of | 2381 crore
• Global textile trade is expected to increase from US$ 750 Bn in 2012 to US$ 1150 Bn in 2020 with Indian textile
market expected to increase from US$ 87 Bn to US$ 200 Bn. In 2013 India has emerged as the second largest
garment exporter and Indian textile exporters have geared up to widen their production base. To benefit from
the increased demand KPR has initiated plans to expand its garmenting capacity by adding further capacity of
10 Mn garments at its existing capacity which would take the total garment capacity to 40 Mn pieces per
annum. KPR is also setting up a new garment capacity of 12 Mn pieces at Thekkalur near Tirupur which is
expected to become operational during Q4FY15 and would take the total garmenting capacity to 52 Mn pieces.
The company has also set up a wind power capacity of 61.9 MW, which currently satisfies 75% of the
company’s power requirement. The company has also set up a 30 MW co-generation power plant which
would lead to entire power needs of the company being met captively at a lower cost. The dual initiatives of
self sufficiency in power and expansion of garmenting capacity should help the company to improve its
profitability and return ratios going ahead
• KPR’s revenues have grown at a CAGR of 31% in FY10-14, while net profit has grown at a CAGR of 30%. The
company has done a capex of ~ 1000 crore over last four years but has been able to maintain a moderate debt
equity ratio at 1.2x. Over the next few years the company’s operating margin is expected to improve on
account of lower cost of power due to captive generation of power and higher proportion of revenues from
the garment division. The company appears well placed to benefit from the improved demand scenario and
would be able to improve its profitability and return ratios owing to the strategic initiatives taken in the last two
years
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
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Repro India
Fundamental view
• KPR Mills is one of the largest textile players in India with a presence across the entire value chain from “Fibre
to Fashion”. The company started operations in 1984 and entered into garment exports in 1989. It has a
diversified client base of ~ 1000 domestic clients for yarn and fabric and ~ 40 international brands for the
garments business. KPR exports its products to marquee international customers like Marks and Spencer’s,
Carrefour, Walmart, Kiabi with exports forming ~ 28% of the total FY14 turnover of | 2381 crore
• Global textile trade is expected to increase from US$ 750 Bn in 2012 to US$ 1150 Bn in 2020 with Indian textile
market expected to increase from US$ 87 Bn to US$ 200 Bn. In 2013 India has emerged as the second largest
garment exporter and Indian textile exporters have geared up to widen their production base. To benefit from
the increased demand KPR has initiated plans to expand its garmenting capacity by adding further capacity of
10 Mn garments at its existing capacity which would take the total garment capacity to 40 Mn pieces per
annum. KPR is also setting up a new garment capacity of 12 Mn pieces at Thekkalur near Tirupur which is
expected to become operational during Q4FY15 and would take the total garmenting capacity to 52 Mn pieces.
The company has also set up a wind power capacity of 61.9 MW, which currently satisfies 75% of the
company’s power requirement. The company has also set up a 30 MW co-generation power plant which
would lead to entire power needs of the company being met captively at a lower cost. The dual initiatives of
self sufficiency in power and expansion of garmenting capacity should help the company to improve its
profitability and return ratios going ahead
• KPR’s revenues have grown at a CAGR of 31% in FY10-14, while net profit has grown at a CAGR of 30%. The
company has done a capex of ~ 1000 crore over last four years but has been able to maintain a moderate debt
equity ratio at 1.2x. Over the next few years the company’s operating margin is expected to improve on
account of lower cost of power due to captive generation of power and higher proportion of revenues from
the garment division. The company appears well placed to benefit from the improved demand scenario and
would be able to improve its profitability and return ratios owing to the strategic initiatives taken in the last two
years
KPR Mills
Fundamental view
• KPR Mills is one of the largest textile players in India with a presence across the entire value chain from “Fibre
to Fashion”. The company started operations in 1984 and entered into garment exports in 1989. It has a
diversified client base of ~ 1000 domestic clients for yarn and fabric and ~ 40 international brands for the
garments business. KPR exports its products to marquee international customers like Marks and Spencer’s,
Carrefour, Walmart, Kiabi with exports forming ~ 28% of the total FY14 turnover of | 2381 crore
• Global textile trade is expected to increase from US$ 750 Bn in 2012 to US$ 1150 Bn in 2020 with Indian textile
market expected to increase from US$ 87 Bn to US$ 200 Bn. In 2013 India has emerged as the second largest
garment exporter and Indian textile exporters have geared up to widen their production base. To benefit from
the increased demand KPR has initiated plans to expand its garmenting capacity by adding further capacity of
10 Mn garments at its existing capacity which would take the total garment capacity to 40 Mn pieces per
annum. KPR is also setting up a new garment capacity of 12 Mn pieces at Thekkalur near Tirupur which is
expected to become operational during Q4FY15 and would take the total garmenting capacity to 52 Mn pieces.
The company has also set up a wind power capacity of 61.9 MW, which currently satisfies 75% of the
company’s power requirement. The company has also set up a 30 MW co-generation power plant which
would lead to entire power needs of the company being met captively at a lower cost. The dual initiatives of
self sufficiency in power and expansion of garmenting capacity should help the company to improve its
profitability and return ratios going ahead
• KPR’s revenues have grown at a CAGR of 31% in FY10-14, while net profit has grown at a CAGR of 30%. The
company has done a capex of ~ 1000 crore over last four years but has been able to maintain a moderate debt
equity ratio at 1.2x. Over the next few years the company’s operating margin is expected to improve on
account of lower cost of power due to captive generation of power and higher proportion of revenues from
the garment division. The company appears well placed to benefit from the improved demand scenario and
would be able to improve its profitability and return ratios owing to the strategic initiatives taken in the last two
years
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
LINK
http://content.icicidirect.com/mailimages/IDirect_Gladiatorstocks_series3.pdf
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