CHAPTER 2

INDUSTRY PROFILE
BACKGROUND OF THE INDUSTRY-CONTRIBUTION TO ECONOMY:
The Textile Sector in India ranks next to Agriculture. Textile is one of Indias oldest industries and has
a formidable presence in the national economy as well as in the international textile economy. Though
it was predominantly unorganized industry even a few years back, but the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy gave the
much needed thrust to the Indian textile industry, which has now successfully become one of the
largest in the world.
India textile industry largely depends upon the textile manufacturing and export. It also plays a major
role in the economy of the country. India earns about 27% of its total foreign exchange through textile
exports. Further, the textile industry of India also contributes nearly 14% of the total industrial
production of the country. It also contributes around 3% to the GDP of the country.
India textile industry is also the largest in the country in terms of employment generation. It not only
generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile
industry currently generates employment to more than 35 million people.
Indian textile industry can be divided into several segments, some of which can be listed as below:
Cotton Textiles
Silk Textiles
Woolen Textiles
Readymade Garments
Hand-crafted Textiles
Jute and Coir
MARKET SIZE:
The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as
well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and
skilled workforce has made India a sourcing hub.

India has the potential to increase its textile and apparel share in the world trade from the current level
of 4.5 per cent to eight per cent and reach US$ 80 billion by 2020.
Textile exports in FY15 are expected to grow by 25 per cent to US$ 50 billion, according to Mr.
Santosh Kumar Gangwar, Minister of State with Independent Charge for Textiles, Government of
India.
The most significant change in the Indian textile industry has been the advent of man-made fibres
(MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries
across the globe. MMF production increased by 9 per cent during April 2014.
Cotton yarn production increased by 2 per cent during April 2014. Cloth production by mill sector and
power loom sector increased by 5 per cent and 6 per cent respectively during April 2014. Total cloth
production increased by about 2 per cent during the same month.
Further, the Government of India plans to launch US$ 44.21 million missions for promotion of
technical textiles, while the Ministry of Finance has cleared setting up of four new research centres for
the industry, which include products such as mosquito and fishing nets, shoe laces and medical gloves.
The global technical industry is estimated at US$ 127 billion and its size in India is pegged at US$ 11
billion.

INDIAN TEXTILE EXPORTS 2014

OTHE

SILK &
HANDLOOM
TEXTILE
HANDI
CRAFTS

READY
MADE
GARMENTS

MAN MADE
TEXTILE
COTTON
TEXTILE

MAJOR PLAYERS:
Company

Business areas

Welspun India Ltd

Vardhman Group
Alok Industries Ltd

Home textiles, bathrobes, terry towels

Yarn, fabric, sewing threads, acrylic fiber
Home textiles, woven and knitted apparel fabric,
garments and polyester yarn
Worsted suiting, tailored clothing, denim, shirting,
woolen outerwear
Spinning, weaving, processing and garment
production (denims, shirting, khakis, knitwear)
Bed linen, towels, furnishings, fabric for suits,
shirts,
dresses and saris in cotton and polyester blends
Dyed and printed fabric
Shirting, poplins, bottom wear fabrics, voiles
Madura Garments lifestyle market (Louis
Philippe, Van Heusen, Allen Solly, The Collective)
Jayashree Textiles domestic linen and worsted
yarn
Indian Rayon viscose filament yarn

Raymond Ltd
Arvind Mills Ltd
Bombay Dyeing &
Manufacturing Company Ltd
Garden Silk Mills Ltd
Mafatlal Industries Ltd
Aditya Birla Nuvo, a
diversified conglomerate of
the Aditya Birla Group,
comprising three divisions
Madura Garments, Jayashree
Textiles and Indian Rayon
ITC Lifestyle

Lifestyle market

Reliance Industries Ltd

Fabric, formal menswear

GOVERNMENT POLICIES AND REGULATIONS:

Government Initiatives
The Government of India has promoted a number of export promotion policies for the Textile sector in
the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. This also includes the various
incentives under Focus Market Scheme and Focus Product Scheme; broad basing the coverage of
Market Linked Focus Product Scheme for textile products and extension of Market Linked Focus
Product Scheme etc. to increase the Indian shares in the global trade of textiles and clothing. The
various schemes and promotions by the Government of India are as follows It has allowed 100 per cent Foreign Direct Investment (FDI) in textiles under the automatic route.
Welfare Schemes: The Government has offered health insurance coverage and life insurance coverage
to 161.10 million weavers and ancillary workers under the Handloom Weavers' Comprehensive
Welfare Scheme, while 733,000 artisans were provided health coverage under the Rajiv Gandhi Shilpi
Swasthya Bima Yojna.
E-Marketing: The Central Cottage Industries Corporation of India (CCIC), and the Handicrafts and
Handlooms Export Corporation of India (HHEC) have developed a number of e-marketing platforms
to simplify marketing issues. Also, a number of marketing initiatives have been taken up to promote
niche handloom and handicraft products with the help of 600 events all over the country.
Skill Development: As per the 12th Five Year Plan, the Integrated Skill Development Scheme aims to
train over 2,675,000 people within the next 5 years (this would cover over 270,000 people during the
first two years and the rest during the remaining three years). This scheme would cover all sub sectors
of the textile sector such as Textiles and Apparel; Handicrafts; Handlooms; Jute; and Sericulture.
Credit Linkages: As per the Credit Guarantee program, over 25,000 Artisan Credit Cards have been
supplied to artisans, and 16.50 million additional applications for issuing up credit cards have been
forwarded to banks for further consideration with regards to the Credit Linkage scheme.
Financial package for waiver of overdues: The Government of India has announced a package of
US$ 604.56 million to waive of overdue loans in the handloom sector. This also includes the waiver of
overdue loans and interest till 31st March, 2010, for loans disbursed to handloom sector. This is
expected to benefit at least 300,000 handloom weavers of the industry and 15,000 cooperative
societies.

Textiles Parks: The Indian Government has given approval to 40 new Textiles Parks to be set up and
this would be executed over a period of 36 months. The new Textiles Parks would leverage
employment to 400,000 textiles workers. The product mix in these parks would include apparels and
garments parks, hosiery parks, silk parks, processing parks, technical textiles including medical
textiles, carpet and power loom parks.
Other government initiatives Scheme for Integrated Textile Parks
The scheme was introduced to neutralize the weakness of fragmentation in the various sub segments of
the textiles value chain and the unavailability of quality infrastructure.
In the 12th Five Year Plan (201217), the government plans to spend US$ 9.1 billion on textiles as
against US$ 4 billion in the 11th Plan.
Policy and regulatory framework
The Ministry of Textiles is responsible for policy formulation, planning, development, export
promotions and trade regulation in the textile sector. This includes all natural and manmade cellulosic
fiber used to make textiles, clothing, and handicrafts. National Textile Policy, 2000 the policy was
introduced for the overall development of the textiles industry. The key areas of focus include
Technological upgrades
Enhancement of productivity
Quality consciousness
Strengthening of raw material base
Product diversification
Increase in exports and innovative marketing strategies
Financing arrangements
Increasing employment opportunities
Integrated human resource development
Technology Mission on Cotton (TMC), 2000, the scheme was introduced to address concerns around
cotton production and processing sectors and to place the cotton economy on a sound footing. It was
initially to be phased out at the end of the Tenth Five Year Plan (200207). However, the schemes
Mini Mission was extended into the Eleventh Plan for two years to accomplish targets.
Jute Technology Mission (JTM), 2006, The objectives of this programme include
Improving the yield and quality of jute fiber

 Strengthening existing infrastructure for the development and supply of quality seeds
Improving the quality of fiber through better methods of retting and extraction technologies
Increasing the supply of quality raw material to the jute industry at reasonable prices and
developing efficient market linkages for raw jute.
Modernizing, upgrading technology, improving productivity, diversifying and developing human
resource for the jute industry
Developing and commercializing innovative technology for the diversified use of jute and allied
fiber
Development of mega cluster schemes
Comprehensive Power looms Cluster Development Scheme (CPCDS)
To assist entrepreneurs to set up world-class units with modern infrastructure, latest technology and
adequate training and human resource development (HRD) inputs along with appropriate market
linkages.
Comprehensive Handloom Cluster Development Scheme (CHCDS)
Formulated to address the challenges faced by weavers within the cooperative sector and outside,
due to poor infrastructure in some clusters.
Comprehensive Handicrafts Cluster Development Scheme (CHCDS)
The textile industry segments eligible to avail concessional loans for technology upgrade requirements
include
Spinning, cotton ginning and pressing
Silk reeling and twisting
Wool scouring and combing
Synthetic filament yarn texturising, crimping and twisting
Manufacturing of viscose filament yarn (VFY) or viscose staple fiber (VSF)
Weaving or knitting including non-wovens and technical textiles
Garments, made-up manufacturing
Processing of fiber, yarn, fabric, garments and made-ups
Jute
RECENT DEVELOPMENTS/TRENDS:

The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted foreign direct investments (FDI) worth US$ 1.22 billion Some
of the major devolpements in Indian Textile Industry are:
British clothing brand Super dry plans to open 20 stores in India over the next five years, as per Mr.
James Holder, Founder, Super dry.
The Export Promotion Council for Handicrafts (EPCH) is setting up an international lace trade
centre at Narsapuram in Andhra Pradesh (AP) with an outlay of Rs 15.33 crore (US$ 2.82 million).
The Aditya Birla Group has signed an in-principle agreement to buy the assets of Ontariobased
Terrace Bay Pulp Mill for Rs 605 crore (US$ 111.62 million). The acquisition would be carried out
through AV Terrace Bay (Canada), a special purpose vehicle (SPV) in which two group companies,
Grasim Industries and Thailand-based Thai Rayon Public, would hold stake.
American apparel-maker, Tommy Hilfiger plans to add 500 stores in India over the next five years
as part of their expansion spree. Currently, Tommy Hilfiger operates 58 franchisee outlets and over 60
shop-in-shops in other department stores.
Italian luxury apparel maker, CancliniTessile is tying up with Tirupur-based Emperor Textiles to
stitch its shirts in India. The equal joint venture (JV) with Emperor Textiles will set up a separate
manufacturing unit in Tirupur to manufacture Italian fabric for domestic consumption.
CHALLENGES FOR THE INDUSTRY:
The cotton textile industry is reeling under manifold problems. The major problems are the following:
Sickness: Sickness is widespread in the cotton textile industry. After the engineering industry, the
cotton textile industry has the highest incidence of sickness. As many as 125 sick units have been
taken over by the Central Government. Sickness is caused by various reasons like the problems
mentioned below.
Obsolescence: The plant and machinery and technology employed by a number of units are obsolete.
The need today is to make the industry technologically up-to-date rather than expand capacity as such.
This need was foreseen quite sometime back and schemes for modernisation of textile industry had
been introduced. The soft loan scheme was introduced a few years back and some units were able to
take advantage of the scheme and modernise their equipment. However, the problem has not been fully
tackled and it is of utmost importance that the whole industry is technologically updated. Not many
companies would be able to find resources internally and will have to depend on financial institutions
and other sources.

Government Regulations: Government regulations like the obligation to produced controlled cloth
are against the interest of the industry. During the last two decades the excessive regulations
exercised by the government on the mill sector has promoted inefficiency in both production and
management. This has also resulted in a colossal waste of raw materials and productive facilities. For
example, the mills are not allowed to use filament yarn in warp in order to protect the interest of art
silk and powerloom sector which use this yarn to cater to the affluent section of society.
Low Yield and Fluctuation of Cotton Output: The cotton yield per hectare of land is very low in
India. This results in high cost and price. Further, being largely dependent on the climatic factors, the
total raw cotton production is subject to wide fluctuation causing serious problems for the mills in
respect of the supply of this vital raw material.
Competition from Man-made Fibres: One of the serious challenges facing the cotton textile industry
is the competition from the manmade fibres and synthetics. These textures are gradually replacing
cotton textiles. This substitution has in fact been supported by a number of people on the ground that it
is not possible to increase substantially the raw cotton production without affecting other crops
particularly food crops.
Competition from other Countries: In the international market, India has been facing severe
competition from other countries like Taiwan, South Korea, China and Japan. The high cost of
production of the Indian industry is a serious adverse factor.
Labour Problems: The cotton textile industry is frequently plagued by labour problems. The very
long strike of the textile workers of Bombay caused losses amounting to millions of rupees not only to
the workers and industry but also to the nation in terms of excise and other taxes and exports.
Accumulation of Stock: At times the industry faces the problems of very low off take of stocks
resulting in accumulation of huge stocks. The situation leads to price cuts and the like leading to loss
or low profits.
Miscellaneous: The industry faces a number of other problems like power cuts, infrastructural
problems, lack of finance, exorbitant rise in raw material prices and production costs etc.
SWOT ANALYSIS OF THE INDUSTRY:
STRENGTH

India has rich resources of raw materials of textile industry. It is one of the largest producers of
cotton in the world and is also rich in resources of fibres like polyester, silk, viscose etc.

India is rich in highly trained manpower. The country has a huge advantage due to lower wage
rates. Because of low labour rates the manufacturing cost in textile automatically comes down
to very reasonable rates.

India is highly competitive in spinning sector and has presence in almost all processes of the
value chain.

WEAKNESS
Knitted garments manufacturing has remained as an extremely fragmented industry. Global
players would prefer to source their entire requirement from two or three vendors and the

Indian garment units find it difficult to meet the capacity requirements.

Industry still plagued with some historical regulations such as knitted garments still remaining

as a SSI domain.
Labour force giving low productivity as compared to other competing countries.
Low bargaining power in a customer-ruled market.
OPPORTUNITY
Low per-capita domestic consumption of textile indicating significant potential growth
Domestic market extremely sensitive to fashion fads and this has resulted in the development

of a responsive garment industry.

India's global share is just 3% while China controls about 15%. In post-2005, China is

expected to capture 43% of global textile trade.

Companies need to concentrate on new product developments
THREATS
Competition in post-2005 is not just in exports, but is also likely within the country due to

cheaper imports of goods of higher quality at lower costs.

Standards such as SA-8000 or WARP have resulted in increased pressure on companies for

improvement of their working practices.

Alternative competitive advantages would continue to be a barrier

CHAPTER 3
COMPANY PROFILE
HISTORY AND BACKGROUND:
The Lakshmi Mills Company Limited has made its unique impact on the tradition of textiles in India.
Its humble origins are to be found at the Naranapuram Ginning Factory and its contributions date back
to 1910 when Mr. G. Kuppuswamy Naidu established the Coimbatore Cotton Mills, which is today the
Unit II of Lakshmi Mills. Unit III and IV followed quickly. These were the first post-war units that
embraced modern technology and they formed the impetus for others to look to textiles as a growing
industry.
Today, Lakshmi Mills stands tall as the doyen of spinning success. An impressive annual
turnover of Rs. 1, 900 million has been bought about with investment in sound technology, a good
work force and a pioneering spirit.
Lakshmi Mills is acknowledged as one of the pioneers of South India's Textile Spinning History, due
to the untiring efforts of its founders and its visionary zeal to scale heights of excellence. The
company's facilities are spread over two plants in Tamil Nadu with a total capacity of more than 1.3
lac spindles and around 26 ring doublers and 386 automatic looms both of shuttle as well as shuttle
less including Air Jet Looms. Around 900 persons are working here, including permanent labors,
scheme apprentices and casual workers. Lakshmi Mills specialises in the production of 100% combed
cotton yarn in super fine counts from 80s to 100s, 2/100s. The HT yarn of Lakshmi Mills is a specialty.
The company celebrated its Golden Jubilee, Diamond Jubilee and Platinum Jubilee and is now
working through the centenary year.
The company has the following 2 units to manufactures 100% cotton yarn, blended yarns and
yarn produced out of special fibers like Modal, X-Static, Tancel etc

SPINDLES

UNIT
Palladam

7
0464

Kovilpatti

6
2928

HISTORICAL EVENTS:
YEAR

EVENTS

1910 - The company was incorporated at Coimbatore. The main

-

Objective of the company is to manufacture cotton yarn, staple fibre yarn and cloth
under the trade have `Lakshmi Mills'. It spins

counts ranging from 20s to 100s and the cloth width ranges from 50 to 53.

1933 G.Kuppusamy naidu took advantage of the hydel power from

-

Pykara dam and promoted the coimbatore cotton mills the present unit 11 of the
lakshmi mills with 1100 apindles.

1941 The unit III with 8000 spindles.

1959 the unit IV set up with 22000 spindles superfine-combed cotton counts. This was the
first post war unit to have piller less building with humidification arrangements on the model
of spinnind schedules in Europe and japan. This was a trendsetter for others to follow in the
years.
1947 - 24,000 bonus shares (Rs. 50 paid up) issued in prop. 1:1.
-

The 23,282 partly paid shares made fully paid by capitalisationof

reserves @ Rs. 25 per share.

1948 - 71,282 `A' bonus shares issued in prop. 1:1.

1957 - 71,282 shares of Rs. 50 each and 71,282; `A' shares of Rs. 25
-

each issued at rights at par in prop. 1:1. Only 70,718 shares

of Rs. 50 each and 70,718 `A' shares of Rs. 25 each taken up.

1960 The company celebrated its golden jubilee.

1966 - 2,13,000 `A' equity bonus shares issued in prop. 1:1 equity
-

And 1:2 `A' equity.

1970 - The company celebrated its Diamond jubilee.

1977 - Coimbatore Cotton Mills Ltd., was amalgamated with the
-

Company effective from the close of business on 30th November.

1979 - 36,000 No. of equity shares of Rs. 50 each and 36,000 `A'
-

equity shares of Rs. 25 each allotted without payment in cash to the members of
Coimbatore Cotton Mills Ltd. in the prop. of 1

equity and 1 equity `A' share for every equity shares of Rs. 100

each held by them on its merger.

1981 - Authorised capital reclassified. Bonus equity shares issued

-

In prop. 1:1 are as follows:

(i) 7,18,000 No. of equity shares of Rs. 50 each and

(ii) 3,91,000 No. of equity shares of Rs. 50 each

(surrendering the original 3,91,000 `A' equity shares of Rs. 25 each).

 1983 - The company issued non-convertible debentures for Rs. 3.75

-

crores.

1984 - 7,47,000 No. of equity shares of Rs. 50 each consolidated

-

Into 3,73,500 shares of Rs. 100 each.

1986 The company celebrated its Platinum jubilee.

-

IDBI sanctioned a loan of Rs. 2.60 crores under the textile

modernization fund.

United Bleachers Ltd., Mettupalayam became a subsidiary of

The company with effect from 31st March.

1989 - The Company had taken up a substantial modernisation

-

programme.

72 old NMM looms were replaced with new high production

Lakshmi-Ruti looms to cater to needs of the export market.

In addition, the spinning preparatory machine was modernised.

One 860 KVA generator was replaced by 1160 KVA generator at

Kovilpatti unit.

The favourable monsoon all over the country and a record

Cotton crop resulted in stable raw material, along with a good

Market for staple fibre yarn and cloth in both domestic and export

markets, contributing higher profits.

1990 - Due to a strike by the workers the profitability declined.

-

8 nos. autoconers and high volume cotton testing instruments

Were imported to cater to the needs of export market. In

addition, the spinning plant was modernised.

1991 - Profitability was adversely affected due to the steep rise in

cotton prices, changes in Government policies pertaining to

import and export of cotton yarn etc.

The Company offered 78,435-15% partly convertible debentures

Of Rs. 800 each as follows:

(i) 74,700 debentures offered to shareholders on rights basis

In the proportion 1 debenture: 5 shares held and

(ii) 3,735 debentures to the employees (including working

directors)/workers of the Company on an equitable basis with

a provision to offer the unsubscribed portion, if any, to

Mutual Funds/institutions at the discretion of the directors,

Subject to the approval of CCI.

Part-A of Rs. 470 of each debenture was to be converted into

One equity share of Rs. 100 each at a premium of Rs. 370 after The expiry of 6 months
from the date of allotment of debentures.

Part-B of Rs. 330 of each debenture was redeemable at par in

three equal annual instalments at the expiry of 6th, 7th and

8th year from the date of allotment of debentures.

1992 - The profitability, however, was adversely affected mainly due

-

To continued recession which led to poor offtake and

Unremunerative prices, political disturbances and a strike by workmen for 58

days in the three units of the Company. The prolonged strike

came to an end and normal working resumed in all the three

units on 14th May, 1993.

90,200 No. of equity shares allotted (prem. Rs. 370 per share)

In conversion of debentures on 27.10.1992.

1994 - 2,31,850 shares allotted as bonus shares.

1995 - However, profitability was seriously affected on account of

The above factors coupled with additional interest burden due to

the implementation of modernisation scheme.

New Trutzschler Blow Room Machine along with 20 second hand

Trutzschler high production cards and second hand

Autoleveller draw frames were imported.

1996 - The company entered into an agreement with M/s. Das Lagerway
-

Wind Turbines Ltd. for use of power generated in 40 Wind Turbines

to be installed by them.

2000 - Lakshmi Mills Company Ltd (LMC) recorded a growth of 19 per cent in its total sales
income during the quarter ended
2000 - at Rs 55.26 crore compared to Rs 46.33 crore in the same period last year. LMC
increased its domestic sales to Rs 47.89 crore (Rs 41.45 crore). Exports also went up to Rs 7.37
crore (Rs 4.88 crore).

2002 - Lakshmi Mills Company Ltd (LMC) incurred a net loss of Rs2.37 crore in 2001-2002
against a net profit of Rs5.11 crore in 2000- 2001. Its turnover fell by 18 percent to
Rs15,965.58 lakh from Rs19,788.24 lakh.
2003 - Lakshmi Mills Company has registered a decline of 23 percent in net sales during JulSep 2003. The company has incurred a net loss of Rs74.78 lakh on net sales of Rs35.07.
Lakshmi Mills had recorded a net profit of Rs40.44 lakh on net sales of Rs45.50 crore during
Jul-Sep 2002.

2004 - LAKSHMI Mills Company has recorded a 19 per cent drop in sales income during the
fiscal ended March 31, 2004. The company's net profit too has shrunk to one-third of the
previous year. According to the audited results of the company, its net sales has decreased to Rs
137.22 crore from Rs 169.01 crore in the previous year.

 The company has decided to shut down operations at Singanallur near Coimbatore as part of
the restructuring and focus on weaving and spinning activities at only three locations.

2005 - LAKSHMI Mills Company Ltd, currently involved in restructuring of its operations,
has closed the third quarter of the fiscal ended December 31, 2004 with a net profit of Rs 2.62
crore. The company's financial statement for the quarter includes a huge `other income' receipt
of Rs 8.76

Oct 6, 2006 - FORWARD INTEGRATION: Models present creations by Lakshmi Mills Co. at
the launch of Tyche Life western casual wear brand in New Delhi on Thursday. NEW DELHI:
The South based textile manufacturer, Lakshmi Mills Co., on Thursday announced its foray
into the garment retail segment.

2008 - The Coimbatore-based Lakshmi Mills Company has informed the Bombay Stock
Exchange that in view of the recessionary trend in the market and considering the condition of
the machinery in its Coimbatore unit, a voluntary retirement scheme (VRS) has been given
effect. Hence, the unit here stopped production since December 18.

2009 - GK Sundaram, chairman and managing director of Lakshmi Mills, died here in the early
hours of Monday. He was 95.

THE GROUP OF LAKSHMI MILLS

The lakshmi mills is much more than corporate entity. As an understanding and responsible, corporate
citizen, the company recognize to develop the physical, mental and spiritual faculty of peoples. In
response to this need the lakshmi group has referral hospital, runs educational institutions from nursery
to graduation and information technology and also manages many temples. These all founded by the
lakshmi group:
The lakshmi mills company ltd, palladam & kovilpatti.

Lakshmi

card

clothing

manufacturing

company ltd,

palladam,

nallattipalayam

&

periyanayakkanpalayam.
Lakshmi automatic loom works ltd, hosur & singarampalayam.
G.kuppusamy naidu memorial hospital, coimbatore.
G.kuppusamy naidu memorial institute of nursing, coimbatore.
Mani higher secondary school, coimbatore.
Mani nursery and primary school, coimbatore.
Lakshmi mills middle school, kuppusamy naidu puram.(tripur dist).
Raksha the hospice, sengadu.
G.venkatasamy naidu collage, kovilpatti.
Laksmi mills higher secondary school, kovilpatti.
Laksmi mills primary school, kovilpatti.
G.kuppusamy naidu memorial sports trust, kovilpatti.
Kuppusamy naidu charity trust for educational & medical relief, coimbatore.
Sri periya Govindasamy naidu hindu religious trust, coimbatore.
Rasakondalar matriculation school, (coimbatore dist).

THE MANAGEMENT:
FOUNDERS:

G.KUPPUSAMY NAIDU

G.K.DEVARAJ

G.K.SUNDARAM

S.PATHY

G.K.DEVARAJ
(MANI)

G.K.RAJ GOPAL

G.K.KANNAMAL

S.KARIVARDHAN

BOARD OF DIRECTORS:
Chairperson S.Pathy .
MD S.Pathy.
Directors - Aditya Krishna Pathy, D.Rajendran, D.Jayavarthanavelu, D.Rajendran, G.Ramanujam,

The Lakshmi Mills Company Limited

(A LEGACY OF TRUST)
Regd Office:
686,Avanashi Road,
Coimbatore - 641 037, India.
Phone:+91-422-2245461 - 65, 4333700

N.Singaravel,

R.Santharam,

S.Balamurugasundaram,

S.Balamurugasundaram, S.Pathy, Sanjay Jayavarthanavelu,

Satish Ajmera, Suguna Ravichandran, V.Jagannathan,
V.S.Velayutham, V.S.Velayutham.

Fax: +91-422-2246508

QUALITY POLICY:

E-Mail: contact@lakshmimills.com

We at Lakshmi mills are committed to manufacture quality

products to meet customer needs and requirements. We
shall enhance customer satisfaction through continual
improvement by excelling in our manufacturing activities
through training and development of all the employees.
This shall be achieved by effective implementation of ISO
9001

quality

management

system

and

continually

improving its effectiveness.

ORGANISATIONAL STRUCTURE:

COMPANY HEAD OFFICE

PRODUCTS/SERVICES:
The company manufactures and sells products like yarns
and fabrics.
YARNS:
100% cotton combed yarn in NE50s to 120s.
100% micro Tencel for sewing thread and weaving
yarn in NE60s to 80s both single and double.
100% modal/micro Tencel/micro modal yarns &
blended yarns in NE30s to 60s for knitting and
weaving.
x-static yarns 95% cotton & 5% x-static fibre in
NE20/1, 24/1, 30/1, 40/1.
Polyester cotton blended yarns for weaving in
NE40s to 70s.
Polyester cotton blended yarns both combed and
carded in NE45s to 80s for weaving and knitting.

FABRICS:
The company sells fabrics and made-ups to domestic and export markets. Some of the products are:

Grey cloth
Dyed and processed fabrics
School and industrial uniforms
Fabrics/made-ups for hospital industry

MARKETS AND MARKET SHARE:

The companys export markets include countries like Japan, U.K, Italy, Turkey,Srilanka, Singapore,
Thailand, Dubai and other European countries.
The domestic markets include Mumbai, Calcutta, Varanasi, Pondicherry, Ahmadabad, Chennai, Delhi,
etc.
FINANCIAL PERFORMANCE:
Lakshmi Mills Company Ltd., incorporated in the year 1910, is a Mid Cap company (having a market
cap of Rs 156.46 Cr.) operating in Textiles sector.
Lakshmi Mills Company Ltd. key Products/Revenue Segments include Yarn (Cotton & Synthetic)
which contributed Rs 186.95 Cr to Sales Value (85.75% of Total Sales), Cloth (Traded) which
contributed Rs 25.41 Cr to Sales Value (11.65% of Total Sales), Waste which contributed Rs 4.65 Cr to
Sales Value (2.13% of Total Sales), Export Incentives which contributed Rs 0.48 Cr to Sales Value
(0.21% of Total Sales), Garments which contributed Rs 0.25 Cr to Sales Value (0.11% of Total Sales),
Scrap which contributed Rs 0.21 Cr to Sales Value (0.09% of Total Sales), Raw Material (Traded)
which contributed Rs 0.05 Cr to Sales Value (0.02% of Total Sales), for the year ending 31-Mar-2014.
For the quarter ended 31-Mar-2015, the company has reported a Standalone sales of Rs. 53.93 Cr., up
8.56% from last quarter Sales of Rs. 49.68 Cr. and down -7.60% from last year same quarter Sales of
Rs. 58.37 Cr. Company has reported net profit after tax of Rs. 0.87 Cr. in latest quarter.