By K.Gopalakrishnan
Major investments across garmenting, processing, knitting and spinning, including a new 45-million-garment facility in Odisha, are expected to generate around ₹2,000 crore in annual turnover
KPR Mills is embarking on one of its significant expansion and modernisation programmes, with its Board of Directors approving a combined investment of ₹1,225 crore across seven projects spanning garmenting, processing, knitting and spinning. The investment programme, approved at the Board meeting held on 10 August 2026, marks a strategic strengthening of the company’s integrated textile and apparel manufacturing platform.
The projects comprise three greenfield facilities and four modernisation-cum-expansion initiatives across Odisha and Tamil Nadu. According to the company’s announcement, the projects are expected to generate an estimated ₹2,000 crore in annual turnover once fully operational.
Importantly, the entire capital expenditure will be funded through internal accruals, underlining KPR Mills’ strong internal cash-generation capability and financial strength. The latest investment programme comes as KPR continues to build scale across its vertically integrated textile value chain, with garmenting
remaining a key growth engine. The company reported a turnover of ₹6,785 crore in FY26, while continuing to modernise its spinning and knitting operations and align fabric production with market requirements.
₹1,225 Crore Across Seven Projects
The largest component of the new investment programme is a ₹450-crore greenfield ready-made garment manufacturing facility in Odisha, which will have an annual capacity of 45 million garments. The facility is scheduled for completion in the first quarter of FY2027-28. The Odisha investment is strategically important for KPR as the company expands its garment manufacturing footprint beyond its traditional Tamil Nadu base. The move also comes at a time when Odisha is attracting significant investments in textile and apparel manufacturing. KPR Mill was among the companies highlighted in the Odisha government’s industrial expansion programme earlier this year.
The second major greenfield project is a ₹250-crore processing factory at Perundurai, Coimbatore, with an annual processing capacity of 10,000 MT. The facility is expected to be completed in the second quarter of FY2027-28.
A third greenfield investment involves a ₹75-crore sweater manufacturing facility at Karumathampatti, Coimbatore, with a capacity to produce 2.5 million garments annually. This project is scheduled for completion in the fourth quarter of FY2026-27.
Together, these three greenfield projects account for ₹775 crore, or more than 63 per cent of the total investment programme.
Strengthening the Tamil Nadu Manufacturing Base
The remaining ₹450 crore will be invested in modernisation-cum-expansion projects at KPR’s existing facilities in Coimbatore.
A ₹90-crore investment will be made to modernise and expand the knitted fabric facility at Arasur, Coimbatore, taking its capacity to 15,000 MT per annum. The project is scheduled for completion in the third quarter of FY2026-27.
Another ₹100 crore will be invested in the modernisation-cum-expansion of the knitted fabric facility at Neelambur, Coimbatore, which will have a capacity to produce 20,000 MT annually. This project is expected to be completed in the fourth quarter of FY2026-27.
The spinning operations will also receive substantial investment. KPR plans to spend ₹85 crore on modernisation-cum-expansion of Spinning Mill Unit 3 at Karumathampatti, with completion targeted for the third quarter of FY2026-27.
A further ₹175 crore will be invested in the modernisation and expansion of Spinning Mill Unit 1 at Karumathampatti, with the project expected to be completed in the fourth quarter of FY2026-27. The modernisation programme reflects KPR’s strategy of combining new capacity with technological upgrades to its existing manufacturing base. KPR’s established facilities include spinning and knitting operations at Karumathampatti, Neelambur and Arasur, alongside garmenting and processing facilities across the Tirupur-Coimbatore region.
Garmenting Remains the Growth Engine
The new investment programme reinforces the central role of garmenting in KPR Mills’ growth strategy.
KPR currently manufactures a broad portfolio of ready-made knitted apparel, fabrics and yarns, including 100 per cent cotton combed, carded, compact and Red Label yarns, as well as vortex and viscose vortex yarns.
Its products reach customers in more than 65 countries. The company’s existing manufacturing network comprises 15 advanced technology-based manufacturing units, with annual capacities of approximately 100,000 MT of cotton yarn, 10,500 MT of viscose vortex yarn, 40,000 MT of fabrics and 204 million ready-made knitted garments.
The latest expansion will add another 47.5 million garments per annum through the proposed Odisha garment facility and the new sweater manufacturing unit. Of this, the Odisha facility alone will contribute 45 million garments, while the Karumathampatti sweater unit will add 2.5 million garments. This represents a significant increase in downstream capacity and reinforces KPR’s strategy of moving further towards value-added apparel manufacturing.
Creating a More Integrated Processing Platform
The proposed ₹250-crore processing facility at Perundurai is another strategically important investment. Processing represents a critical link between fabric manufacturing and finished apparel. By expanding its processing capabilities, KPR can strengthen its vertical integration while improving its ability to respond to customer-specific requirements.
The company already operates an industry-acclaimed fabric processing facility with a capacity of 25,000 MT per annum, equipped with advanced cold processing technology and an ETP system. Its sophisticated printing division has a capacity of 15,000 MT per annum, complemented by high-fashion garment placement printing capacity of around 100,000 garments per day.
The new processing investment will add another 10,000 MT of annual capacity, strengthening the company’s ability to support its expanding downstream operations.
Modernisation to Drive Productivity
While greenfield investments are attracting attention because of their scale, the ₹450 crore modernisation-cum-expansion programme is equally significant.
KPR is investing ₹90 crore and ₹100 crore respectively in its Arasur and Neelambur knitted fabric facilities, while another ₹260 crore will be directed towards the two spinning units at Karumathampatti. These investments demonstrate that KPR’s growth strategy is not based solely on adding new production lines. Modernisation of existing assets is being pursued simultaneously to enhance efficiency, productivity, quality and utilisation.
The company’s continued modernisation of its spinning and knitting divisions has been an important feature of its growth strategy, while fabric production is being aligned with market requirements.
₹2,000 Crore Revenue Potential
One of the most significant aspects of the latest investment announcement is the revenue potential associated with the projects.
KPR estimates that the seven projects together could generate approximately ₹2,000 crore in annual turnover. Against a total investment of ₹1,225 crore, this represents a substantial potential revenue addition once the projects reach their intended operating levels.
The fact that the projects will be financed entirely through internal accruals is also noteworthy. Rather than relying on external debt to fund the expansion, KPR intends to deploy internally generated resources for the entire capital expenditure.
This provides the company with greater flexibility as it expands capacity while maintaining financial discipline.
Building on an Integrated Manufacturing Model
KPR’s investment programme cannot be viewed in isolation from the company’s broader vertically integrated business model.
The company currently has a substantial manufacturing footprint covering yarn, knitting, fabrics, processing and apparel. Its energy portfolio includes 61.92 MW of wind power, 40 MW of solar power and 90 MW of co-generation capacity, providing a total power-generation capacity of 191.92 MW and helping meet a significant portion of its energy requirements through captive sources. The company also operates sugar plants with an aggregate capacity of 20,000 TCD and ethanol plants with a capacity of 470 KLPD.
This level of integration gives KPR greater control over raw materials, manufacturing processes, energy costs, quality and delivery schedules. It also enables the company to capture greater value across the textile and apparel chain.
Strengthening India’s Global Apparel Position
KPR’s expansion comes at a time when the global apparel supply chain is undergoing significant restructuring. International buyers are increasingly looking for reliable, scalable and vertically integrated sourcing partners capable of delivering consistent quality and shorter lead times.
KPR’s presence across yarn, fabrics, processing and garments provides a strong foundation to participate in this changing global sourcing landscape. The proposed Odisha garment facility could be particularly important in this context. The 45-million-garment annual capacity will create a substantial new manufacturing base for KPR, while diversifying its geographic footprint.
The company’s existing customer base includes more than 1,500 buyers in the Tirupur market, one of India’s most important knitwear and cotton apparel clusters, in addition to its international customer base.
Investment-led Growth with Sustainability at the Core
KPR’s expansion strategy also continues to be supported by its focus on renewable energy and resource efficiency.
The company’s captive renewable-energy generation has helped reduce power costs while contributing to its sustainability objectives. Its processing operations incorporate ETP systems and advanced processing technologies, reflecting the growing importance of water and resource efficiency in textile manufacturing.
The combination of new capacity, modernisation, vertical integration and renewable energy is therefore central to KPR’s strategy of building a competitive manufacturing platform for the next phase of growth.
A Significant Step-Up in Scale
The ₹1,225-crore programme represents a clear acceleration of KPR Mills’ investment cycle. More importantly, it is a balanced investment programme: greenfield expansion will create new manufacturing capacity, while modernisation will strengthen the productivity and efficiency of existing assets. The three greenfield projects will establish new capabilities in garmenting, processing and sweaters, while the four modernisation projects will expand knitting and spinning capacities at established Coimbatore facilities.
With the projects expected to contribute around ₹2,000 crore in annual turnover, KPR is effectively seeking to add a sizeable new revenue stream to an already substantial textile and apparel business. The investment also signals confidence in the long-term prospects of India’s textile and apparel industry. As global sourcing continues to diversify and buyers seek dependable manufacturing partners, KPR’s strategy is to strengthen its position through scale, integration, technology, efficiency and value addition. The ₹1,225-crore investment programme is therefore more than a capacity expansion. It represents another significant step in KPR Mills’ evolution from an integrated textile manufacturer into an increasingly large-scale, globally oriented apparel and textile enterprise.