K K Silk Mills Limited
Introduction
K K Silk Mills Limited is an Indian textile manufacturing firm which was founded in 1991. They are into the production of artificial and cotton fabrics, and ready-to-wear clothes. Their HQ is in Mumbai, Maharashtra and they have a plant in Umbergaon, Gujarat.
Gradually they have gained a good reputation of shirting and suiting fabrics of high quality, which are supplied to domestic and international garment makers.
Industry Overview
The textile industry is amongst the oldest industries in India that is very imperative in terms of employment, exports and the total production. It deals with spinning, weaving, processing and making of garments.
Fabrics and clothing are demanded by:
- Expansion in the fashion and clothing market.
- Increased demand of corporate and branded wear.
- Increasing textile exports
Organisations such as K K Silk Mills are major suppliers of fabrics in the formal wear, casual wear, dress materials and home textile.
Purpose of the Analysis
- Learn the business nature and structure of K K Silk Mills.
- Research the managerial and promoter history.
- Evaluate strengths, weaknesses and risks.
- Analyze financial and growth opportunities.
Company Overview
K K Silk Mills Limited was established on 26 August 1991 and it began as a small unit that produces fabrics and it developed gradually. They enhanced their capacity and developed a good customer base in the textile and garment industry. They were converted to a public limited company in 2018.
Business Model
They have a vertically integrated textile operation that entails:
- Production of clothes and fabrics.
- providing clothes to garments producers and distributors.
- manufacturing apparel in all segmentations.
- Domestic and international selling.
They do everything in house production, design, manufacturing, to ensure quality is tight and efficient.
Key Products / Services
They deal with a great variety of textile products:
**Fabrics**
- Cotton fabrics
- Polyester fabrics
- Cotton‑polyester blends
- Jacquard fabrics
- Printed fabrics
- Linen fabrics
**Garments**
- Men's formal and casual shirt.
- Sherwani materials
- Women’s dress textiles
- Burkha fabrics
- Kidswear
- Company and standardized apparel.
These are sold to the local and international garment manufactures.
Market Position
K K Silk Mills is an emerging competitor in the fabric and garment industry in India. They specialize in high end shirting and suiting materials serving manufacturers, fashion brands as well as institutional clients. Their background of more than 30 years in the game gives them the status of a reliable supplier in the industry.
Introduction Promoter/Founder.
The main promoters are:
- Mr. Manish Kantilal Shah
- Mr. Nilesh Kantilal Jain
- Mrs. Ashaben Manish Shah
Professional Background
The group has extensive background in textiles, gridlining supply chains, and garment production. Their experience assisted them in establishing good relations with clients and expand the business scope.
Position in Company Development and Planning.
- Strategic planning and growth.
- The use of technology in the manufacturing.
- Quality and product innovation increases.
With them, the company grew to a sizeable unit to become a well-established manufacturer.
Financial Statement
Profit and Loss
Particulars (₹ Cr) | Mar-23 | Mar-24 | Mar-25 |
Sales | 188.81 | 190.54 | 220.78 |
Gross Profit | 11.34 | 13.70 | 17.62 |
EBITDA | 8.78 | 10.17 | 14.64 |
Depreciation | 2.13 | 1.96 | 2.10 |
Earnings Before Tax | 1.45 | 3.02 | 6.60 |
Net Profit | 1.07 | 2.26 | 4.68 |
Interest | 5.20 | 5.19 | 5.94 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales (Cr) | 188.81 | 190.54 | 220.78 |
Net Profit (Cr) | 1.07 | 2.26 | 4.68 |
Gross Profit (Cr) | 11.34 | 13.70 | 17.62 |
Current Assets (Cr) | 78.38 | 83.97 | 110.56 |
Current Liabilities (Cr) | 21.88 | 24.92 | 44.22 |
Borrowings (Cr) | 48.06 | 51.67 | 59.31 |
Equity (Cr) | 32.81 | 35.04 | 39.72 |
Interest (Cr) | 5.20 | 5.19 | 5.94 |
Total Assets (Cr) | 102.75 | 111.63 | 143.25 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|
Cash Flow from Operating Activities | 1,843 | 973 | 2,931 |
Cash Flow from Investing Activities | 433 | 915 | -1,507 |
Cash Flow from Financing Activities | -2,254 | -2,244 | -1,034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio
Particulars | Mar-23 | Mar-24 | Mar-25 |
|---|---|---|---|
Sales (Cr) | 188.81 | 190.54 | 220.78 |
Net Profit (Cr) | 1.07 | 2.26 | 4.68 |
Gross Profit (Cr) | 11.34 | 13.70 | 17.62 |
Current Assets (Cr) | 78.38 | 83.97 | 110.56 |
Current Liabilities (Cr) | 21.88 | 24.92 | 44.22 |
Borrowings (Cr) | 48.06 | 51.67 | 59.31 |
Equity (Cr) | 32.81 | 35.04 | 39.72 |
Interest (Cr) | 5.20 | 5.19 | 5.94 |
Total Assets (Cr) | 102.75 | 111.63 | 143.25 |
Important Implications and Analysis.
Strengths
- 30 years experience in textile industry.
- Wide product selection (clothing and fabrics)
- Modern plant in Umbergaon
- Made of a complete fabric to garment.
Weaknesses
- Strong dependence on the textile demand.
- Low branching out of other industries other than textiles.
- Receiving volatility of raw-materials (cotton, polyester)
Risk Factors
- Unpredictability of prices of raw materials.
- Intensive rivalry with local and foreign producers.
- Government policy or exportation regulations.
- Recessions that impact the demand of apparel.
Future Outlook
Positive signs include:
- Increasing demand of quality fabrics and clothes.
- Expansion opportunities Globally and Domestically.
- Increasing demand of corporate and fashion clothes.
- Employing high-level textile technology and enhanced procedures.
Conclusion
Financial Health Final Evaluation.
The market K K Silk Mills is operating in is competitive, although growing. They have a strong manufacturing platform, experienced management, and product mix hence a solid foundation to grow in the long term.
The Perspective of Investment or Performance.
The company is promising, as an investor, due to:
- Well established presence in the sector.
- Increased clothing and cloth production.
- Export expansion prospects
However, raw material cost risks, competition and market swings are some of the pitfalls that potential investors should observe.