Tirupur-based K.M. Group of Companies, comprising of K.M. Knitwear (P) Ltd. and Jeyavishnu Clothing (P) Ltd., is a vertically integrated conglomerate with a presence in the entire fiber to fashion aspects of the value chain. Renowned for its commitment to quality and sustainability, the group has consistently achieved impressive growth rates over the years.
During our exclusive interview, we had the opportunity to meet Vishnuprabu KS, the dynamic and young Joint Managing Director of K.M Group. We spoke about a range of topics, including the company’s history, product offerings, core strengths, sustainability initiatives, corporate social responsibility (CSR) activities, and future plans.
Beginning the conversation with a brief overview of the company’s history, Vishnuprabu shared, “The K.M. Group of Companies was founded by my father, Mr. K.M. Subramanian, in 1993. Since our inception, we have been focused on exports and have earned recognition as a government-certified 3-star export house. With a modest seed capital of Rs. 1 lakh, we started our garments division, and over the years, we have achieved significant growth, reaching a turnover of Rs. 750 crore last year. This growth, spanning more than 25 years, stands as one of our major accomplishments. I attribute this success to my father’s vision and hardwork. It’s been nearly 5 years since I joined the business and my brother has joined last year.”
Vishnuprabu, who holds a B. Com (Hons) from Shriram College of Commerce, New Delhi, an MBA from Chirst University and an MS in Global Marketing Management from Virginia, USA, initially oversaw the company’s processing division. He explained, “We started with our garment division and subsequently implemented backward integration. In 2003, we ventured into hosiery spinning with a setup of 36,000 spindles, which was considered state-of-the-art at the time. After five years, we established our dyeing plant, starting with a small capacity of 5 tons per day for our in-house needs. Today, it has grown to nearly 50 tons per day, making it one of the highest-capacity dyeing plants in the Tirupur region. As our business expanded, so did our production facilities over the years.”
“When it comes to our buyers, our major focus is on Primark in the UK. We also work with a couple of baby garment brands in the USA and serve 2 to 3 Norwegian brands. While we prioritize niche products, we also ensure we handle volume orders. This approach allows us to climb the ladder in terms of turnover. Our garments division primarily caters to exports, with the UK market served through a buying house in Tirupur, and the US and Norwegian markets managed via our own marketing office based in Bengaluru. Consequently, we have established a presence across the US and Europe. In dyeing and spinning, 80% to 90% of our business comes from the domestic market,” Vishnuprabu elaborated.
Vishnuprabu highlighted that the company’s restructuring has been a strategic process spanning the past 15 years. He stated, “We have undertaken this restructuring with careful planning. Even during periods of challenging business sentiment, we have managed to maintain our turnover. In 2021-22, we achieved a figure of Rs. 700 crores, and in 2023, we reached Rs. 750 crores. We have not experienced any major downturn, thanks to our diversification efforts.”
Manufacturing infrastructure
The company currently operates across 11 units in and around Tirupur. Elaborating on the manufacturing infrastructure, Vishnuprabu stated, “As a strategic decision, we are focused on consolidation. We believe that having a single balance sheet strengthens the company and allows for better projection to the outside world. Nowadays, people are more interested in the overall value a company creates rather than just the bottom line. To present ourselves more effectively, we decided to consolidate as a single entity. Over the past five years, we have been engaged in this consolidation process. Now, we have two companies – KM Knitwear, which handles garmenting of European clients and spinning, and Jeyavishnu Clothing, which focuses on garmenting of US clients and processing.”
He further explained, “In terms of capacity, we operate around 3,000 machines across our units. Our processing unit handles approximately 70 tons per day (dyeing and AOP), while in spinning, we have 72,000 spindles. We recently commissioned an additional 36,000 spindles to support our yarn production, bringing our capacity to 50 tonnes of yarn per day with an average 26s count.” The company boasts an employee strength of 5,000, with approximately 80% of the workforce driven and strengthened by women.
Key strengths
Pointing out the key strengths that give the company has for a competitive edge, Vishnuprabu highlighted, “Vertical integration is a significant strength for us. It is not an easy undertaking as it requires substantial investment. While it may be easier to start a garment factory and outsource other processes, spinning and processing are capital-intensive and often deter investment. However, we wanted to elevate our quality standards. Repeat business from buyers hinges on quality, and that is ultimately what matters. We recently invested Rs. 200 crores in our new state-of-the- art spinning project, which is a significant capital expenditure given the current market conditions.”
“In this project, we have embraced automation to the maximum extent possible. Our initial spinning mill project required nearly 700 employees, but with automation, we can now operate it with 300-350 employees. Finding labor has become challenging, so automation and reducing dependency on labor have been key motivations for our investments. Similarly, we have made substantial investments in sustainability within our processing operations.”
“Our second unique selling proposition (USP) is our diversification strategy. We have made numerous small investments across all our units to expand our capabilities. Additionally, we have focused on digitization, which is a prominent trend in the industry. We have an in-house software team and rely on our own software rather than third-party solutions. Data analysis plays a crucial role in managing the company efficiently. It aligns with my father’s philosophy that ‘System should work, and individuals should follow the system.’ Our aim is to build a robust system where everyone is accountable. Digitization is an area where we excel.”
Sustainability drive
The company has made significant investments in green energy, generating 15 MW of wind power and 10 MW of solar power. Elaborating further, Vishnuprabu added, “We have recently expanded our green energy capacity by adding another 3 MW through rooftop solar installations. This brings our total green energy generation to approximately 30 MW. In addition, we have invested around Rs. 100 crores over the years in the Effluent Treatment Plant (ETP) at our processing plant which is completely Zero Liquid Discharged (ZLD). Today, around 70% of our processing capacity is job work oriented and our customers now associate with us because of our sustainability initiatives. We invite them to bring their buyers and witness our sustainable practices firsthand. We believe in growing sustainably together, and that has become our primary focus.”
The company has also invested in a Membrane Bio Reactor (MBR) recently. Vishnuprabu explained that the MBR method is capital-intensive, but it has significantly reduced chemical usage for effluent treatment. “Previously, we used to spend around Rs. 40-45 lakhs per month on chemicals for effluent treatment. With the MBR method, this cost has reduced to Rs. 10 lakhs. The sludge produced is now enzyme and bacteria (biological) based, rather than chemical-based. Even if it is disposed of, it does not pose the same hazards as chemical sludge. Furthermore, the MBR method requires less space and consumes less power. Previously, we spent 40 paise to treat one liter of effluent water, but now it is around 25 paise. Our target is to further reduce it to 15 paise.”
Two of the company’s factories have achieved Platinum certification in Green Factory rating. Additionally, the processing unit of Jeyavishnu Clothing has received a Green Award for its sustainable and eco-friendly practices from the Chief Minister of Tamil Nadu. Vishnuprabu noted, “We currently use coal for heat energy, but we are working towards reducing our dependence on it. We are exploring the use of biomass, produced from burnt wood chips and dried cashew plums, as an alternative to coal. While biomass may not be as strong as coal due to our capacity requirements, we aim to gradually introduce biomass as a sustainable energy source. Coal is predominantly used for steam generation, and now we are transitioning towards equipment which generate steam through power which is in turn produced from our solar and wind farms.”
“The coal emissions undergo five levels of filtration before being released, and the final coal ash is not disposed of. Instead, we convert it into fly ash bricks and utilize them for construction purposes. We also prioritize rainwater harvesting and undertake these sustainability-focused initiatives,” emphasized Vishnuprabu.
CSR activities
As part of its CSR activities, the group has adopted a government school in Koduvai where the founding Chairman, Subramanian, had studied. Vishnuprabu shared, “We have invested approximately 90 lakhs in constructing hygienic restrooms, auditorium and providing smart classrooms in the school. Additionally, three years ago, with the support of my father’s Rotary connections, we built a crematorium, contributing personal funds as well. We are actively involved with ‘Vanathukul Tirupur’ an NGO dedicated to tree planting. In our dyeing plant, we aim to follow 17 sustainable goals and provide free saplings to our customers. Each year, we surpass our goals. In the previous year, we distributed close to 1000 saplings.”
Positive outlook
Currently, our turnover stands at Rs. 750 crores annually. Our immediate focus is to become a Rs. 1000 crore company by 2025 and touch Rs. 1500 crore by the year 2030. However, our goal is not just to grow in terms of turnover, but also to increase the value we create for the company. We have placed significant emphasis on this aspect recently. Consolidation is currently a major focus for us as we aim to project ourselves as a robust entity. Sustainability is already ingrained in our operations, and we have made substantial investments in sustainability initiatives. Apart from our two units, we are striving to obtain Platinum certification for most of our factories. We aim to equip all our factory rooftops with solar panels. Currently, our solar power capacity is 3 MW, and we aim to increase it to 6-7 MW. Each factory should generate its own energy, and that is our focus.”
Recognizing the promising future for MMF and active wear, Vishnuprabu shared their strategic investments in this area. “We have recently installed state-of-the-art machinery capable of processing sensitive and low GSM fabrics. Our goal is to become a one-stop solution for our customers. No matter how challenging the fabric they bring, we want to instill confidence in them that we can handle it,” Vishnuprabu concluded the interaction on an optimistic note.