ABOUT SRI KANNAPIRAN MILLS LIMITED
SRI KANNAPIRAN MILLS LIMITED is a part of KG Group. The company is a leader in manufacturing 100% cotton yarn of the highest quality standards. It was established in 1946. Today, the company owns two open-end and two ring-spun yarn units, which altogether produces 83 tons of cotton yarn every day and distribute it in both national and international market.
The ring-spun units have a spindlage capacity of 45000 and produce 25 tons of yarn every day in the count range of 6s to 100s in combed and carded quality. And the open-end facilities, with 8900 rotors, produce 58 tons of yarn every day in the count range of 2s to 24s. All the four spinning units of Sri Kannapiran Mills Limited are ISO 9001 certified.
The company produces open-end polyester/cotton yarn in the count range of 6s to 20s in 52:48 and 65:35 blends. It also manufactures recycled cotton yarns in coarse counts.
Apart from this, Sri Kannapiran Mills Limited’s product portfolio consists of cotton knitted gloves, thermal blankets, terry blankets, bath blankets in bleached and grey form, and many more.
In the wake of Covid 19 lockdowns and social distancing requirements, Companymoved over to DigitalPlatform for marketing its products and contacting customers through Zoom Networking or Blue Jeans, or Google Meet. The company obtained 2additional Trade Marks viz., “KG Fabriks” and “Grow Forest” during the year apart from the existing 3 brands viz., Product Zero, Green Dnm, and Dnm Zero.
02 July 1946
Address of the Registered office and contact details
Post Bag No.1, Sowripalayam,
Coimbatore – 641 028
Phone No. 0422-2351111
Name, Address and Contact Details of
Registrar and Transfer Agent, if any
Cameo Corporate Services Limited
“Subramanian Building”, No.1, Club House Road,
Chennai - 600 002
Phone : (044) 28460390
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services
NIC Code of the product/service
% to total turnover of the Company
Weaving of Textiles
BOARD OF DIRECTORS
Mr K G Balakrishnan (Chairman)
Dr G Bakthavathsalam (Executive, Managing Director)
Mr B Sriramulu (Executive, Managing Director)
Mr B Srihari (Executive, Managing Director)
Mr A Velusamy (Executive, Whole Time Director)
Mr K N V Ramani (Independent, Non-Executive)
Mr V Arunachalam (Independent, Non-Executive)
Mr K B Nagendra Murthy (Independent, Non-Executive)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
SRI KANNAPIRAN MILLS LIMITED does not have any subsidiary or associate company.
SRI KANNAPIRAN MILLS LIMITED UNLISTED SHARE DETAILS
Total Available Shares:
Rs. 10 Per Equity Share
Last Traded Price:
Rs. 45.46 Crore
(As of 31-03-2020)
Number of shares
% of total Shares of the company
Cotton production in India reached 36.04 million bales in FY 2020. India is the second-largest producer of cotton accounting for 25% of the global cotton area and 18% of global cotton production. Cotton prices ruled favorably during the year in view of the good cotton season in India.
The demand for Ring and Open-end yarn did not increase during FY 2020 and the margin was lower due to excess production in India. Power position in Tamil Nadu was favorable during FY 2020. On a positive note, there is a surge in E-commerce and online sales. Indian textile industry is facing a huge liquidity crunch and uncertainty pertaining to future orders. The priority is to revive the growth as the Indian economy heals from the scars of Covid 19.
The growing anti-China sentiment that was triggered by the US-China trade tension intensified further after the outbreak of Coronavirus in China. Global apparel manufacturers in the USA and EU are now finding Bangladesh, Vietnam, and India as competitive markets over China. Covid 19 has opened avenues for e-commerce players as consumers increased their online purchasing as a safe alternative to physical shopping.
Overall FY 2021 is expected to be a tough year and the major focus shall be on premium value-added products,cost-cutting, improving productivity, value-added sustainable products to improve the profitability of companies in this industry.
It is expected that once the Covid curve flattens and the textile business improves the present integration of spinning and weaving will largely help in achieving higher sales and profitability.
KEY FINANCIALS OF SRI KANNAPIRAN MILLS LIMITED(In Rs. Lakhs)
Revenue from Operations
Profit Before Tax
Profit After Tax (PAT)
BALANCE SHEET OF SRI KANNAPIRAN MILLS LIMITED(In Rs. Lakhs)
NON CURRENT ASSETS
Long term loans and advances
Other Non Current Assets
TOTAL NON CURRENT ASSETS
Cash and Cash Equivalents
Short-Term Loans and Advances
Other Current Assets
TOTAL CURRENT ASSETS
EQUITY AND LIABILITIES
Reserves and Surplus
NON CURRENT LIABILITIES
Long Term Borrowings
Deferred Tax Liabilities (Net)
Long Term Provisions
TOTAL NON CURRENT LIABILITIES
Short Term Borrowings
Other Current Liabilities
TOTAL CURRENT LIABILITIES
TOTAL EQUITY AND LIABILITIES
Dividend (final + interim) (In Rs.)
PERFORMANCE OF THE COMPANY
Yarn production of the company for FY 2020 was 180 lakhs kgs compared to 192 lakhs kgs of FY 2019. Lower yarn demand affected net margins.
Denim Business continued to be weak due to excess capacity.
In FY 2020, Company partnered in “The Jeans Redesign Project” which is an initiative of “The Ellen MacArthurFoundation” to make “Jeans more Sustainable”.
Yarn and Fabric exports for the year were Rs.4,400lakhs constituting 15% of total sales.
Revenue from Operations of the company for FY 2020 was Rs. 30,384.1 lakhs, Rs. 72 lakhs less than the revenue from operations of Rs. 30,456.14 lakhs in FY 2019.
EBITDA of the company decreased by 10.7% from Rs. 2903.39 lakhs in FY 2019 to Rs. 2,592.69 lakhs in FY 2020. Thereafter, EBITDA margins decreased from 9.53% in FY 2019 to 8.53% in FY 2020.
Profit After Tax of the company was Rs. 651.76 lakhs in FY 2019, which turned into a loss of Rs. 46.31 lakhs in FY 2020. This was mainly because of the increase in operational expenses.
The Current Ratio of the company as of 31st March 2020 was 0.85, this states that the company is facing liquidity issues. However, the whole textile industry was facing a liquidity crisis in FY 2020.
Sri Kannapiran Mills Limited has not given any dividends for the past three years.
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