About
K C P Ltd
K.C.P. Limited was incorporated as a Public Limited Company in July, 1941. A multi-product company with two sugar mills, downstream distillery, a cement plant and an engineering division, KCP was initially a sick sugar unit (cap. : 600 tpd). It was taken over by the late Velagapudi Ramakrishna in 1941. The merger of Challapalli Sugars - a BIFR company - with it in 1988 and expansions have increased its sugar capacity tenfold to 6300 tpd over the last five decades. Presently, the Company is operating into manufacture and sale of cement, heavy engineering, power generation for captive use and hospitality.
The cement factory, set up in 1958, was the first dry process plant in India. The engineering division was set up in 1955 as an in-house venture to manufacture sugar machinery required by the company. Manufacture of machinery required for cement, chemicals, steel castings, etc, were later added to this division. Both the cement and engineering divisions have been accredited with the ISO 9002 and ISO 9001 certification respectively in 1994.
KCP hived off its sugar and industrial alcohol business, which was transferred to a new company, KCP Sugar Industries Corporation. The Company also undertook a joint venture with Vantech Industries for the manufacture of specialised insecticides. KCP promoted FCB-KCP, a joint venture with FCB, France, in a 40:40 equity participation. The new company is to manufacture and supply state-of-the-art machinery and technology to clients in the sugar industry both in India and abroad.
The cement unit of the company continues to retain the ISO 9001 certification while the engineering unit was accredited to use the symbol 'S' and 'U' of the American Society of Mechanical Engineers (ASME) for the manufacture and assembly of power boilers and pressure vessels, respectively on 15 May'96. KCP has also received the Certificate of Merit for outstanding export performance during 1994-95 among Non-SSI exporters in industrial machinery panel for manufacture of sugar, paper, chemical, cement and pharmaceuticals.
The company had set up 5 mini-hydel units aggreagting 8.25 MW capacity in the Guntur branch canal of the Nagarjuna Sagar Dam. Electricity generated in this unit is wheeled to the cement unit for use. During 2001-02 the company entered into an agreement with Andhra Pradesh Transmission Corporation Limited(APTRANSCO) for wheeling the generated energy at Hydel stations to the cement plant with a wheeling charge of 2% fixed for a period of 20 years.
Natural Colour Extraction Plant was commissioned in Nov' 05. The Company commissioned a Wind Farm of 3.75 MW during Sep'06 in Uthumalai, in Tirunelveli Dist.
During the year 2009-10, the New Cement Unit II of Muktyala Plant Project up to the stage of clinkerisation got commissioned on Mar 07, 2011. The 18 MW Thermal Power Plant at Muktyala was commissioned during the year 2014-15. The Company commissioned the Mercure Hotel Project at Hyderabad in 2015-16.
The operation of Brown Field Cement Project at Muktyala was commissioned in 2018-19. The construction of remaining facilities such as packing plant, Cement Silo and Fly-Ash Silo got commissioned in Sep' 19 and Feb' 20 respectively. The operations of Cement Packing Terminal Project in Arakonam near Chennai was commissioned in FY 2022.
K C P Ltd
Chairman Speech
Dear shareholders,
With a legacy of over 82 years, KCP group has emerged from being just a
cement manufacturing Company into a diversified business conglomerate. With an unwavering
commitment to quality, innovation and sustainability, and by focusing on best-in-class
products, community initiatives, supplier management systems, and external partnerships,
we have built a strong foundation for a lasting relationship with all our stakeholders and
society at large.
India's growth continues to be resilient, underpinned by the
Government's capital outlay and buoyant private consumption. India's GDP is
estimated to have registered a growth of 6.8% in FY 2022-23 and is expected to continue to
be the fastest growing large economy for the third consecutive year.
With the prioritised allocations for Infrastructure sector in Union
Budget 2022-23 for the third year in a row, the volume in cement industry is expected to
grow on the back of demand from infrastructure and housing.
In a challenging macroeconomic environment, marked by geopolitical
uncertainties, high commodity inflation and tepid market growth, we delivered yet another
year of good results. Our Sale volume (cement) witnessed an increase of 2% from 30.52
million tons in FY 2021-22 to 31.19 million tons in FY 2022-23 and Net revenue from
operations grew by 5.53% from Rs.158443 Lakhs in FY 2021-22 to 167210 Lakhs in FY 2022-23.
Recently we have experienced moderation in fuel prices, and although still unpredictable,
we expect it will help us to recover margins. The Performance of Engineering Segment was
marginally better as compared to last year. The unit still has to cross many hurdles on
its way to profitability, some of which are competition from the unorganized sector and
advancement in machining technology.
The Mercure Hyderabad KCP Hotel continued to show good prospects and
growth and has positioned itself as a leading business hotel. The Subsidiary company M/s
KCP Vietnam Industries Limited and Joint Venture M/s Fives Cail KCP Limited also
registered reasonably good numbers in year 2022-23.
We are working towards ESG (Environmental, Social and Governance) goals
proactively, through delivering low-carbon products, increasing the use of alternative raw
materials, fuels, and increasing our share in green power. Our actions are driven by a
heartfelt commitment to our employees, suppliers, customers, and communities in and around
our areas of operation, This Annual Report has a Business Responsibility and
Sustainability Report (BRSR) that covers our ESG vision, policy, agenda and progress
against elements of each of the nine principles under the National Guidelines on
Responsible Business Conduct. As a socially responsible business group, we remain
committed to the communities we live and operate in. During the year, we supported a
variety of social initiatives to create a positive impact in areas such as , healthcare,
education, sustainability, skill development and women empowerment. To maintain the
consistency in Dividend payment, the Board has recommended a dividend of Re.0.10 per
equity share of Re.1/- each (10%) for the year 2022-23 subject to shareholder approval at
the Annual General Meeting.
I would like to thank all stakeholders, particularly our dedicated
employees, for their continued trust, support, and confidence in our leadership.
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K C P Ltd
Company History
K.C.P. Limited was incorporated as a Public Limited Company in July, 1941. A multi-product company with two sugar mills, downstream distillery, a cement plant and an engineering division, KCP was initially a sick sugar unit (cap. : 600 tpd). It was taken over by the late Velagapudi Ramakrishna in 1941. The merger of Challapalli Sugars - a BIFR company - with it in 1988 and expansions have increased its sugar capacity tenfold to 6300 tpd over the last five decades. Presently, the Company is operating into manufacture and sale of cement, heavy engineering, power generation for captive use and hospitality.
The cement factory, set up in 1958, was the first dry process plant in India. The engineering division was set up in 1955 as an in-house venture to manufacture sugar machinery required by the company. Manufacture of machinery required for cement, chemicals, steel castings, etc, were later added to this division. Both the cement and engineering divisions have been accredited with the ISO 9002 and ISO 9001 certification respectively in 1994.
KCP hived off its sugar and industrial alcohol business, which was transferred to a new company, KCP Sugar Industries Corporation. The Company also undertook a joint venture with Vantech Industries for the manufacture of specialised insecticides. KCP promoted FCB-KCP, a joint venture with FCB, France, in a 40:40 equity participation. The new company is to manufacture and supply state-of-the-art machinery and technology to clients in the sugar industry both in India and abroad.
The cement unit of the company continues to retain the ISO 9001 certification while the engineering unit was accredited to use the symbol 'S' and 'U' of the American Society of Mechanical Engineers (ASME) for the manufacture and assembly of power boilers and pressure vessels, respectively on 15 May'96. KCP has also received the Certificate of Merit for outstanding export performance during 1994-95 among Non-SSI exporters in industrial machinery panel for manufacture of sugar, paper, chemical, cement and pharmaceuticals.
The company had set up 5 mini-hydel units aggreagting 8.25 MW capacity in the Guntur branch canal of the Nagarjuna Sagar Dam. Electricity generated in this unit is wheeled to the cement unit for use. During 2001-02 the company entered into an agreement with Andhra Pradesh Transmission Corporation Limited(APTRANSCO) for wheeling the generated energy at Hydel stations to the cement plant with a wheeling charge of 2% fixed for a period of 20 years.
Natural Colour Extraction Plant was commissioned in Nov' 05. The Company commissioned a Wind Farm of 3.75 MW during Sep'06 in Uthumalai, in Tirunelveli Dist.
During the year 2009-10, the New Cement Unit II of Muktyala Plant Project up to the stage of clinkerisation got commissioned on Mar 07, 2011. The 18 MW Thermal Power Plant at Muktyala was commissioned during the year 2014-15. The Company commissioned the Mercure Hotel Project at Hyderabad in 2015-16.
The operation of Brown Field Cement Project at Muktyala was commissioned in 2018-19. The construction of remaining facilities such as packing plant, Cement Silo and Fly-Ash Silo got commissioned in Sep' 19 and Feb' 20 respectively. The operations of Cement Packing Terminal Project in Arakonam near Chennai was commissioned in FY 2022.