KRM International

KRM International KRM INTERNATIONAL was incorporated in 1988 for the manufacture and export of leather shoe uppers, leather garments and hosiery garments. It has posted a significant performance and registered a turnover of Rs 1,970 lakh for 1991-92. Its excellent performance in exports has enabled the company to achieve the Export House status. The company has also been awarded a certificate of merit for commendable performance in export of footwear components to general currency areas, in the Rs 10 to 20 crore category, by the Council for Leather Exports. The company has earned valuable foreign exchange to the tune of Rs 30 crore in the past four years. KRM International has been promoted by the three Modi brothers, Shashi Kumar Modi, chairman, and Sunil Kumar Modi and Sanjay Kumar Modi, whole-time directors. They are also partners in KR Modi and Co, Bihar, which has business interests in the processing and exporting of mica since 1914. To overcome a shortage in timely availability of quality finished leather in its business, the company is now putting up a tannery unit for captive consumption and higher value addition. During the current year the company has already achieved a sales turnover of Rs 14.50 crore as on 31.1.93 and is hopeful of achieving the projected turnover of Rs 20 crore by the end of this financial year. The company has confirmed orders to the extent of Rs 6 crore for the first quarter of the next financial year. The tannery project will enable the company to capitalise on the prevailing world scenario in leather goods marked by units in Europe and other developed countries closing down operations due to high labour cost and overheads and the company is to facilitate higher production levels and expand its range of leather products. The total cost of the project is estimated to be Rs 722 lakh and it is proposed to be financed with a term loan from the IFCT of Rs 180 lakh, public issue of equity shares at a premium Rs 480 lakh (share capital Rs 120 lakh and share premium amounting to Rs 360 lakh) and internal accruals Rs 62 lakh. Almost the entire production is being exported directly to international buyers. The company has already established a good market in Germany, Japan, Czechoslovakia and other European countries. Further, the company has plans to open offices in US and UK so as to access major business centres. The Indian leather industry is well set for rapid growth. Exports of leather and Ieather products have grown from Rs 3,997.49 million in 1980-81 been proposed to increase the export of