ABOUT SRI KANNAPIRAN MILLS LIMITED UNLISTED SHARE
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 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.
INCORPORATION DETAILS
|
CIN |
U17111TZ1946PLC000188 |
|
Registration Date |
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 |
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 |
|
Cotton Spinning |
2351 |
59.00% |
|
Weaving of Textiles |
1312 |
41.00% |
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)
SSHAREHOLDING PATTERN (As of 31-03-2020)
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Promoters Shareholding |
32,73,112 |
90.00% |
|
2 |
Public Shareholding |
3,63,367 |
10.00% |
|
|
Total |
36,36,479 |
100.00% |
INDUSTRY OUTLOOK
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.
