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CRISIL Equities


Company overview

KLRF is a diversified player with presence in three business segments – wheat flour milling, textiles and engineering (which includes sheet metal fabrication and castings). KLRF commenced operations with a flour milling unit in the Tirunelveli district of Tamil Nadu in 1964. It markets its flour under the brand “Kuthuvilakku” which is fairly well known in Tamil Nadu.

The company established an engineering division in 1978 for the manufacturing of sheet metal products to cater to the requirements of textile machinery and other capital goods manufacturers. The sheet metal unit was started as a sub-contracting plant for Laxmi Machine Works (LMW). It still derives most of its revenues from LMW. Its share in the overall revenues is negligible.

Building on Mr V. Jagannathan’s experience in textiles, the company forayed into textiles in 1982 with a cotton textile spinning unit located next to the flour mill. It started with a capacity of 12,000 spindles which was subsequently expanded to 29,520 spindles. In 1988, a second textile mill was commissioned in the Virudunagar district of Tamil Nadu. It was an open-end spinning unit with 672 rotors. Subsequently, the capacity was expanded to 2,760 rotors.

To increase revenues from the engineering division, KLRF acquired Eltex Super Castings Ltd, a foundry belonging to the promoter’s brother and located next to the Sheet Metal division. The company was referred to the BIFR following management issues. It had the requisite licences and environmental clearances, which made it a good takeover target for KLRF.



1964 1978 1982 1982 1988 1995 2007 2007 Source: C

Commencement of commercial production from flour milling unit Commencement of operations of the Sheet Metal division Public listing of the company on BSE Start of commercial production of Textile unit I Start of commercial production of Textile unit II Start of windmill division Substantial acquisition in Eltex Super Castings Follow on Public Offer for dilution of 32% stake ompany reports

The company has been listed on the BSE since 1982. It undertook a follow-on public offer in 2007 for dilution of 31.7% of the promoter’s holding, for revamping the foundry.


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