K P R Mill Ltd

Dear Fellow Shareholders,

The world economy is facing intense trade tensions along with policy uncertainty that weaken the global economic outlook. Higher tariffs are likely to strain global supply chains, drive up production costs and delay critical investment decisions, besides financial market volatility. However, India's strong domestic growth and low export dependence will help it navigate tariff challenges and global trade disruptions. Government's initiatives towards boosting consumption, manufacturing and infrastructure will offset weakening global demand. The tension with neighbouring Country pose minimal economic disruption. India is poised to surpass Japan and become the world's fourth largest economy by 2025 - marking another milestone (IMF). The country is projected to remain the fastest growing major economy, driven by strong momentum in the industrial and services sectors. Inflation has remained within the RBI's target range reflecting stable macroeconomic conditions. During the Financial year 2025, the Indian Textile Industry witnessed healthy growth assisted by stable cotton prices, favourable forex rates, Government initiatives and duty hikes on fabric imports. However, capacity constraints in garment manufacturing pose challenges.

Surpassing the challenges posed during previous Financial year, KPR could make better progress this year too, empowered by its high competence and adapting to changed manufacturing scenarios in terms of planning, efficiency and sustainability. Its extensive experience over four decades to overcome any challenges in the textile arena, has proved to be successful amidst difficult market conditions. It could be made possible with the support of our strong fundamentals, dedicated work force, disciplined financial policy, intensive teamwork, high quality & committed suppliers and above all adoption of core values and principles since inception. As a mighty supporter of eco-friendly measures, our investment in renewable energy continues with the strengthening of Solar power resource in our Green Energy basket.

By continuously focusing on healthy and valued work environment, KPR improves its overall employee engagement levels and ensures that the employees feel valued and supported at work as well as in the Society. The resultant trust and collaboration improves their sense of belonging and productivity thereby helping the sustained success. KPR's strong adoption of the prime principles of Corporate governance - accountability, transparency, fairness and responsibility - makes its decisions prudent & ethical; its oversight effective besides protecting the rights of shareholders and stakeholders.

• In the 15'h Convocation Ceremony of 'Tamil Nadu Open University' held during October 2024, 579 graduates from KPR were conferred degrees across undergraduate and postgraduate programs. Out of these, 11 employees secured gold, silver, and bronze medals for academic excellence at the university level.

• In the Civil Services Examinations, conducted in 2024 by the Union Public Service Commission (UPSC), 6 candidates from KPR IAS Academy successfully cleared the examination.

• Under career development process, 42 employees secured placement in a Leading Hospital at Coimbatore.

The India - UK, FTA offers a big boost to the Indian Textile Industry, which is currently facing export challenges due to volatile US Tariff rates. This pact opens major opportunities for

India's textile sector especially garments to strengthen its market share in the UK by capitalizing on its manufacturing strengths and global competitiveness. Overall, with demand sentiments reviving in both the domestic and export markets, I feel the Indian Textile Industry would continue to contribute significantly to the Indian Economy. It has faced and it is hoped that the move would improve its performance in the near future. Continuous modernization in spinning is crucial for increased productivity, reduced costs, improved quality and better competitiveness in the global market, to increase the operational efficiency and profitability. KPR continuously modernises its spinning division. Setting up of exclusive vortex yarn manufacturing Unit; ramping up of advanced Garment manufacturing facility at Chengapally; accretion of Green energy resources and strategic expansion plans are expected to improve its performance further in the years to come.

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 confidence and look forward to the same in the years ahead.

With best wishes

Chairman