K P R Mill Ltd

<dhhead>CHAIRMAN’S LETTER</dhhead>

Dear Fellow Shareholders,

The Financial year 2024 was yet another year of significant challenges across the globe. Deteriorated global geopolitical situation and economic uncertainty, including higher energy and food prices, mounting in ation rates and volatile markets prevailed. Almost all nations felt its impacts. However, India withstood the challenges by leaning on high demand, moderate in ation, stable interest rate and strong foreign exchange reserves.

It was a challenging year for the Textile Industry also as a whole. The fluctuation in cotton prices resulting in lower yarn realization; reduced demand from downstream apparel companies; increase in energy cost; piling up of inventories, severe competition from competing countries, etc. were some of the contributing factors. Embracing the challenges and opportunities, KPR once again demonstrated its risk-bearing prowess by achieving considerable revenue and pro tability with the support of its integral strengths, aggressive competitiveness, ability to meet the changing market trend and the supportive garment segment. In spite of the unsettling landscape, 2024 was another performance year for KPR that enabled declaration of an aggregate Dividend of 500% to the Shareholders of the Company.

KPR’s UNIQUENESS

As you are aware, to sustain the momentum of your company, we have built a solid foundation of people, process and systems. While, Peers also have access to the similar opportunities, financial resources, strategies and markets, the rationale behind KPR’s uniqueness in sustaining its growth levels even during di cult times is attributable to its strong and dedicated intangible assets which includes organization structure, people competencies, systems & processes, our Culture and most importantly our principles Honesty, Integrity and Hard work. These core values have guided KPR in its progress so far and continue to serve as the foundation of KPR, a dynamic entity. We would like every member of our group to follow these values over generations. We could also have a great sense of satisfaction that we are able to play our part well, to the extent possible in societal development whether it is Human development or Sustainability practices.

Recognising its importance in steering the Nation’s growth path we have been contributing to these values ever since we commenced our business. Good corporate governance, for us, does not mean just compliance with regulatory requirements, because the spirit of governance goes beyond the statutory form protecting the interests of all stakeholders in a just and equitable manner.

CREDENTIALS

Under career development process, 194 employees secured placement in various reputed organizations such as Tata Electronics, Tech Mahindra, and Titan etc.

In 2022 Civil Service Examination, 11 candidates from the KPR IAS Academy have successfully passed. Among them 2 candidates who are already IFos and IPS have also passed the IAS Exam.

With immense pleasure we wish to inform you that KPR has made its prestigious entry in the list of ‘India’s Top 100 Richest’ with a net worth of 2.3 billion US dollars as per the reputed Business Magazine ‘Forbes India’.

In the recently concluded 12 Standard Government Examination, 100% Results were achieved by our Employees. As in every year, recognizing their achievement, KPR has awarded the top scorers ‘Scholarship’ for their collegiate education.

KPR is continuing its No.2 position in ‘Indian Textile and Apparel Sector’ based on Market Capitalization in BSE & NSE.

FUTURE PROSPECTS

India will continue to be the fastest-growing major economy in the world, as per the latest projections of the Organization for Economic Co-operation and Development (OECD). Indian Textile Industry is expected to rebound in the current year on consistent improvement in the domestic demand, lower cotton prices and gradual recovery in exports. KPR’s expansion in vortex spinning, strengthening of renewable power resources through roof-top solar power plant and modernization of spinning division to improve quality and productivity further are expected to drive its growth level to the next stage. I am con dent that your company will continue to be a key player in this textile arena in the years ahead also.

ACKNOWLEDGEMENT

I wish to express my appreciation to my colleagues on the Board and our employees for their dedication and commitment. I express my sincere gratitude to the Shareholders, our Bankers and all Stakeholders for their continued support and con dence and look forward to the same in the years ahead.