KOVILPATTI LAKSHMI ROLLER Share price

Kovilpatti Lakshmi Roller Flour Mills Limited was incorporated on 16th December 1961 as a Private Limited Company with an Authorized Capital of Rs.9 lakhs. It was later converted into a Public Limited Company on 8th May 1982. At the time of conversion Company had a paid up capital of Rs.32 lakhs. Subsequently the equity capital of the company was raised asfollows;1982 Public issue of 307500 equity shares of Rs.10/- each @ Re. 11/- each 30.751992 Bonus issue of 627500 equity shares of Rs.10/- each 62.751993 Rights issue of 628050 equity shares of Rs.10/- each @ Rs.80/- each of which 52.9198954 equity shares forfeited1997 Preferential issue of 616950 equity shares of Rs.10/- each @ Rs.26/- each 61.69At present our Company has a paid up equity capital of Rs.240.10 lakhs. The Reserves and Surplus as at 30th September 2005 stood at Rs.1389.32 lakhs. The company?s shares are listed at Mumbai Chennai and Coimbatore Stock Exchanges.KLRF was originally promoted to manufacture wheat products. Subsequently we expanded our activities into the areas of textiles engineering and power generation from wind energy for captive consumption.Our wheat flour mill commenced operation in the year 1964 with the establishment of a wheat roller flour mill facility at Gangaikondan village Tirunelveli district Tamil Nadu with a milling capacity of 2000 tons per month. We manufactured wheat products under the brand name ?Kuthuvilakku?. With the increase in demand it became necessary to increase the milling capacity. We undertook an expansion program in the year 1978 and the total milling capacity was increased to 5000 tons a month. Our reach in the market also increased considerably and we continue to have a substantial presence in the southern districts of both Tamil Nadu and Kerala. In Tamil Nadu our markets extend from Kanyakumari to Madurai and inKerala from Trivandrum to Alleppy and Kottayam.KLRF established a sheet metal division in the year 1978 to cater to the requirements of textile machinery and other capital goods manufacturers. Since 2001 we have ceased to operate the unit on its own andinstead the fabrication facilities are leased out to Mr. R. Soundararaju who conducts the fabrication activities and caters to the existing customers of KLRF. As per the existing agreement KLRF earns Rs. 175000/- per month as lease charges.KLRF undertook further diversification in 1982 and established a cotton textile-spinning mill in Gangaikondan villageTirunelveli district adjacent to the flour mill for the manufacture of cotton yarn. It started with a capacity of 12000 spindles which subsequently expanded to 29520 spindles with 12 combers 4 auto coners auto leveler drawframes and a yarn conditioning plant over time. In 1988 a second textile mill was commissioned atN. Subbiahpuram village Virudunagar district Tamil Nadu. It was an open-end spinning unit with 672 rotors. Subsequently the capacity has been expanded to 1344 rotors.We have installed windmills commencing from 1994-1995 and currently have an installed capacity of 3.75 MW of power generation through windmills for captive consumption. This has resulted in lower power cost for the company and tax benefits.The flour milling division milled 45233 tons of wheat in the year 2004-2005. This accounted for 49.59% of the turnover of the company. The company has undertaken an infrastructure development activity by increasing storage capacity and installation of wheat conveying equipment during the year 2005-2006. This is expected to result in reduction in material handling expense and improvement in product quality.Textile division produced 4838393 kgs of cotton yarn valued at 48.57 crores which contributed to 50.39% of the turnover of the company in 2004-2005. An investment of 322 lakhs has been made to optimize spinning productivity and to achieve flexibility in processing capabilities in the first half of 2005-2006.An investment of Rs. 610 lakhs been made in March 2005 to install a wind mill with a capacity of 1.25 MW expected togenerate around 37 lakh units an year for our consumption.MILESTONES ACHIEVEDYear of Incorporation 16.12.1964Commencement of commercial production of flour mill 1964Start of Sheet Metal Division 1978Start of commercial production of Textile Unit I 1982Start of commercial production of Textile Unit II 1988Start of wind Mill Division 1995ISO 9001 certificationFlour Mill Division July 2000Textile Division Unit I July 1999Textile Division Unit II July 1999Engineering Division November 2002