Kallam Textiles Ltd · BSE:KALLAM
Kallam Textiles — Investor Presentation (February 2018)
42 slides from Kallam Textiles's investor presentation, Feb 12, 2018
Slide 1: Kallam Spinning Mills Ltd.
12/02/2018 1 Kallam Spinning Mills Ltd.
Slide 2: Change of name to Kallam Textiles Ltd.
We are delighted to announce that we are in the process of change our existing name to “KALLAM TEXTILES LTD.” In line with change of business profile by value addition of our products. 12/02/2018 2 Kallam Spinning Mills Ltd.
Slide 3: Safe Harbour
SAFE HARBOUR 1. This presentation is not intended to be a “prospectus” (as defined under the Companies Act, 2013 and the relevant provisions of the rule, the Companies (Prospectus and Allotment of Securities ) Rules, 2014). 2. Certain statements made in this presentation may not be based on historic
Slide 4: Company Overview
Company Overview 25 Years of Commitment to the Excellence in Quality Our Values Kallam Spinning Mills Ltd evolved from Hard working, Consistent and Stood for its Moral Values. Kallam Spinning Mills Ltd has been listed in BSE since 1995 and has 100% compliance from inception to Listing till date. The
Slide 5: Company Overview
Company Overview 25 Years of Commitment to the Excellence in Quality Even though company started commercial operations in 1995 their were few or nil subsidies from Indian Govt. The TUF was introduced by Ministry of Textiles, Govt of India in 1999. The company availed TUF for all its term loans. Furt
Slide 6: Company Overview
Company Overview 25 Years of Commitment to the Excellence in Quality The Company had loyal and committed customer base who keep buying company products month on month and year on year basis. simply company had repeat order loyal customers. Customer Loyalty Directors of the company visits customers o
Slide 7: Company Overview
Company Overview 25 Years of Commitment to the Excellence in Quality The Company invested in latest state of art technology with a view to manufacture best quality products with least man power, least power cost etc. Constant Technological The Company always invested in new machinery and never resor
Slide 8: Key Strengths
1 The management team is well experienced with hands on Key Strengths experience in all areas of operations and key members of the team are able to access to trend forecasts and strategic planning at macro and micro levels. Since cotton sourcing is the single most important element in the 2 spinning
Slide 9: Internal Control System and Compliance
The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The internal financial controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations. The Internal Control System of the Company has
Slide 10: Capex: Ring Spinning Capacity
1994 - 95 Ventured into Ring Spinning installing 3024 Spindles Capex 1995 - 96 Ring Spinning Capacity increased to 12096 spindles 1998 - 99 Ring Spinning Capacity increased to 18144 spindles 2002 - 03 Ring Spinning Capacity increased to 20040 spindles 2003 - 04 Ring Spinning Capacity increased to 21
Slide 11: Capex: Compact Spindles, Open End, Ginning
Capex 2006 - 07 Ventured into Compact spindles installing 6624 2007 - 08 Compact spindles Capacity increased to 8832 2008 - 09 Compact spindles Capacity increased to 15456 Compact Spindles 2009 - 10 Compact spindles Capacity increased to 22080 2010 - 11 Compact spindles Capacity increased to 27840 2
Slide 12: Capex: Weaving, Dyeing, Hydro Power
Capex 2014 - 15 Weaving Commissioned 248 looms 2014 - 15 Dyeing Dyeing of Cotton Yarn 5000 kgs per day production 2001 - 02 Hydro Power Generating Capacity of 2.4 MW Hydro Electric Power Plant 2010 - 11 Hydro Power Generating Capacity increased to 4.0 MW 12/02/2018 12 Kallam Spinning Mills Ltd.
Slide 13: Conservation of Energy
Conservation of Energy Energy Audit by SITRA on regular basis. Reduction of compressed air pressure in looms from 6 bar to 4 bar there by reducing power cost by 7.5 lakhs / month. Use of LED lamps where ever possible. Frequent testing and tuning of equipment by OEM manufactures. Proper regular preve
Slide 14: Value Addition Business
KALLAM SPINNING MILLS LTD., VALUE ADDITION BUSSINESS Seed cotton is Procured directly from farmers Rs 50/Kg From Ginning Cotton Seeds STAGE -1 Raw Cotton are separated undergoes sold to edible Cotton Lint Cotton bales Bale press Ginning oil mills Rs 120/Kg Cotton Lint and Spinning Waste STAGE -2 spi
Slide 15: Value Addition Business Stages
Rs 300/Kg 80 % Spun yarn sale for STAGE -3 20 % Spun yarn weaving and yarn dyeing. Rs 150/Kg sale for domestic ( Inter Divisional transfer ) market. 10 % OE yarn sale for weaving & yarn dyeing. ( Inter Divisional transfer ) 70 % OE yarn sale 20 % OE yarn sale for Export market. for domestic market.
Slide 16: Printing and Garmenting Stages
STAGE -7 PRINTING PROCESSING AFTER PRINTING Rs 1000/Kg STAGE -8 GARMENTING Rs 1500/Kg 12/02/2018 16 Kallam Spinning Mills Ltd.
Slide 17: Cotton Procurement
Kallam spinning mills ltd is situated in Guntur. Which is one of the Best quality cotton growing areas in India. Guntur district produces MCU5 cotton which is long staple and best suited for fine counts. Kallam group is in cotton Business for more than four decades. Mr P.V Reddy Managing director wa
Slide 18: Bale Management System and Yarn Engineering
In any spinning mill cotton represent the major share of yarn cost. Cotton constitutes 55% to 75% of yarn price depending on count. Bale Management system is based on the categorizing of cotton bales according to their fiber quality properties. It consist of measurement of the fiber characteristics
Slide 19: Quality of Yarns and Fabric
Quality of yarns and Fabric manufactured is the single most important factor that will take a company forward in its success story. Your company has been aware of the said importance from its inception and the progress that it has made through the years was mainly because of the strict adherence to
Slide 20: Preserving the Nature
Preserving the Nature Selected Zero discharge effluent treatment plant to maintain ecological balance and reduce pollution. ETP consists biological system, ultra filtration, reverse osmosis in 2 stages, nano filtration. The above process ensures 90% water recovery for reuse and saves water which is
Slide 21: Human Resource
Human Resource Employees are the company’s most valuable resource. The Company continues to create a favorable environment at work place. The Company has various welfare measures both government sponsored and privately envisaged. The Company is providing good accommodation facilitates by constructin
Slide 22: Town Ships
Town Ships The Company's beautiful, self-contained and cosmopolitan township provides residential facilities for our employees and their families. Along with its lush green environment and lush green parks, employee cooperative society, ATM facility, Kindegarden School, Bus facility for school child
Slide 23: CSR Activities
Company had committed to spend 2% of the profit in CSR activity as per the present Govt of India policy. Following activities are taken 1) Giving scholarships to poor children in the neighbor hood villages of weaving plant. 2) Providing bituminous roads in the villages 3) Provide RCC benches in vill
Slide 24: ISO 9001 Certifications
ISO: 9001 Spinning certified since - 1999 Weaving & Dyeing unit since - 2017 Spinning and Weaving units are certified since - 2016 Certified since - 2017 Certified since 2018 Apart from in process inspection system, mill has adopted very stringent final inspection procedure before dispatching yarn t
Slide 25: Sales: Our Growth Year on Year
Sales Our growth year on year Turnover ( Net Sales) 3500 3100.03 2972.4 3000 2761.05 2512.68 2500 2193.69 Millions INR 2000 1865.32 1559.21 1500 1418.78 1000 830.59 623.31 683.67 513.09 500 373.8 340.94 241.71 286.68 262.04 249.41 253.5 241.71 165.82 224.58 74.7 0 1996 1997 1998 1999 2000 2001 2002
Slide 26: Thrust on Exports
Thrust on The company is recognized by the Govt of India as Star Rated of Export House.The company has good export records both for yarn and fabric. Yarn is being exported to Bangladesh, china, Japan, Korea, Bangkok, Srilanka, Vietnam etc.. Fabric being exported to Korea, Bangkok, Bangladesh, Srilan
Slide 27: Fixed Assets Gross Block
Fixed Assets Gross Block FIXED ASSETS (Gross Blocks) 5000 4439 4574 4500 4000 3705 3500 3316 in Millions INR 3000 2500 2000 1790 1621 1717 1437 1500 1125 818 899 1000 716 499 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* FY * Note On FY 2018 : Estimated 12/02/2018 27 Kallam
Slide 28: Book Value per Share
Book Value BOOK VALUE 140 125 120 106 102 100 89 PER SHARE INR 80 69 57 58 60 38.98 40 31.76 27.77 23.79 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* FY * In 2017 Book Value is Calculated on the Face Value of Rs 10 /- per share 12/02/2018 28 Kallam Spinning Mills Ltd.
Slide 29: Dividend History
Dividend History Dividend (%) 18 20 14 15 12 12 12 10 9 10 10 10 10 7 5 0 0 0 12/02/2018 29 Kallam Spinning Mills Ltd.
Slide 30: Share Price Movement
Share Price Moment Year Open Price High Price Low Price Close Price 2005 11.50 44.90 8.59 29.20 2006 30.00 37.20 13.10 19.25 2007 20.85 29.00 14.70 25.85 2008 27.40 34.85 10.55 12.00 2009 11.03 29.80 9.06 25.70 2010 25.00 72.75 21.20 56.85 2011 58.25 71.85 22.05 24.50 2012 23.55 40.00 23.05 36.20 20
Slide 31: Mr. P Venkateswara Reddy – Managing Director
Mr. P Venkateswara Reddy – Managing Director Mr. P Venkateswara Reddy aged 67 years and he was appointed as Managing Director w.e.f 28th September, 2002. Mr.PV Reddy hails from Agricultural family from Ramanayapalem, Prakasam Dist. Mr. PV Reddy is Brother-In-Law of Mr.K.Haranadha Reddy, Chairman
Slide 32: Mr GVK Reddy – Joint Managing Director & CEO
Mr GVK Reddy – Joint Managing Director & CEO Mr GVK Reddy is the Joint Managing Director of Kallam Spinning Mills Limited and aged 60 Years. He is a graduate in Mechanical Engineering with Distinction and 1st Rank holder from Andhra University, Visakhapatnam. He did his M.Sc (Engg) (Marine Enginee
Slide 33: Mr. MV Subba Reddy – Whole Time Director & CFO
Mr. MV Subba Reddy – Whole Time Director & CFO Mr. MV Subba Reddy, age 60 years is the Whole Time Director of Kallam Spinning Mills Limited. He hails from Agricultural family and native of Modukuru Village, Guntur Dist. He is associated with the Company since 1996. He is Post Graduate in Commerc
Slide 34: Mr. VSN Murthy: Nominee Director, IREDA
Mr. VSN Murthy : Nominee Director, IREDA Mr. VSN Murthy, 79 Years is a Nominee Director by IREDA. He is a Post Graduate in Commerce with distinction from Andhra University, Visakhapatnam. He joined Singareni Collieries Limited in the year 1963 as Junior Officer and worked for seven years in variou
Slide 35: Mr. S Pulla Rao – Independent Director
Mr. S Pulla Rao – Non- Executive & Independent Director S Pulla Rao is a graduate in B.Com from Andhra University and B.L. from Nagarjuna University. He joined in income tax Department in 1966. Categorizing his performance as “outstanding” he was promoted from the post of Income tax Inspector to i
Slide 36: Mr. Ajeya Kallam – Independent Director
Mr.Ajeya Kallam – Non- Executive & Independent Director Mr Ajeya Kallam, IAS, Retired as Chief Secretary to the Govt of Andhra Pradesh. He is a 1983 batch IAS officer and a post graduate in Agriculture with a Masters in Business Administration from Australia had put in 34 years in Indian Administr
Slide 37: Mr. V Ramagopal – Independent Director
Mr.V Ramagopal – Non- Executive & Independent Director Mr. V Ramagopal is aged 65 years. He has a Masters Degree in Bio-Chemistry. He joined as Probationary Officer in Indian bank in 1973, before moving to Andhra Bank in 1976. In senior positions he served as Zonal Manager (DGM) in Zonal Office,
Slide 38: Mrs. Bhargavi Vangala – Independent Director
Mrs. Bhargavi Vangala – Non- Executive & Independent Director Mrs. Bhargavi Vangala, B.Com, F.C.A, DISA is a Independent and Woman Director of Kallam Spinning Mills Limited and aged 31 years. She is a practicing Chartered Accountant . Mrs. Bhargavi qualified as a CA in the year 2011 and started pr
Slide 39: Capex Plan from 2018 to 2020
Capex Plan from 2018 to 2020 These will increase the turnover from existing Rs 3000 to Rs 5000 Million. Increase the no of looms from 248 to 310 These facilities will involve a Increase in yarn dyeing capacity from 5000 Kg per day to 8000 Kg per day capex of Rs 1300 Million. Setting up process house
Slide 40: Future Plan of Action 2018-20
Future Plan of Action 2018 - 20 1) Change of name to ”Kallam Textiles Ltd” in line with change in activities of the company. 2) Put up another 62 Airjet looms with a capital cost of Rs 36 Cr Justifications a) The spinning unit is having excess yarn producing capacity then consumed by weaving unit. A
Slide 41: Future Plan of Action 2018-20
Future Plan of Action 2018 - 20 4) Laying below ground pipe line from Gundlakama river to Weaving unit. Govt of AP G.O for drawing water from Gundlakama river to weaving unit. The water is required for process house, yarn dyeing plant and Residential town ship. a) Land to an extent of 22 cents was p
Slide 42: Company Information
Company Information For Further information please contact Corporate and Registered Office: Ginning , Spinning and OE Division: Weaving and Dyeing Division: Kallam Spinning Mills Limited Kallam Spinning Mills Ltd, Chowadavaram Kukumapadu (V), Adanki(M), Guntur -522 019 Prakasam (Dt) – 523 264 Andhra
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