Kovilpatti Lakshmi Roller Flour Mills Limited (KLRF) has successfully obtained shareholder approval for its strategic diversification into the hotel and hospitality sector. The company announced the results of its postal ballot on December 19, 2025, confirming overwhelming support from shareholders for the proposed business expansion.

Postal Ballot Results

The voting results demonstrate strong shareholder confidence in the company's diversification strategy:

Approved Business Expansion

The special resolution allows KLRF to alter its Memorandum of Association to include hotel and hospitality operations. The approved activities encompass:

• Operating as hoteliers, hotel proprietors, and managers
• Running restaurants, cafes, and food and beverage establishments
• Engaging in tour operations and event management
• Constructing, acquiring, and maintaining hotels, resorts, and hospitality facilities

Voting Process and Compliance

The postal ballot process was conducted entirely through remote e-voting, managed by MUFG Intime India Private Limited. Sri. M.D. Selvaraj, FCS, Managing Partner of MDS Associates LLP, served as the Scrutinizer to ensure transparency and fairness in the voting process.

The cut-off date for determining eligible shareholders was November 14, 2025, and the postal ballot notice was dispatched on November 18, 2025, through electronic mail to registered shareholders.

Strategic Implications

This unanimous approval marks a significant milestone in KLRF's transformation from a traditional flour milling company to a diversified business entity. The move into hospitality represents the company's strategy to explore new revenue streams and enhance long-term profitability beyond its core flour milling operations.

The resolution was deemed passed on December 18, 2025, being the last date for receipt of postal ballot voting, and the results were formally declared by Chairman and Managing Director Sharath Jagannathan on December 19, 2025.

Kovilpatti Lakshmi Roller Flour Mills Limited (KLRF) has reported a significant turnaround in its financial performance for the quarter ended September 30, 2025, while also announcing plans to diversify into the hotel and hospitality sector.

Financial Performance

KLRF has shown a remarkable improvement in its financial results for the second quarter of the fiscal year 2025-26. The company reported:

For the six-month period:

The company operates through two segments:

Expansion into Hotel and Hospitality Sector

In a strategic move to diversify its business operations, KLRF's Board of Directors has approved a proposal to enter the hotel and hospitality business. Key points of this decision include:

• Alteration of the company's Memorandum of Association to include the new line of business.
• Estimated capital expenditure not exceeding ₹25 crores for establishing the hotel and hospitality business.
• The expansion plans are subject to shareholder approval.

Corporate Actions

The Board has also approved the following actions:

1. Conducting a postal ballot process through remote e-voting to obtain shareholder approval for altering the Objects Clause of the Memorandum of Association.
2. Publication of the unaudited financial results in English and Tamil newspapers, along with a Quick Response (QR) code.

The company's statutory auditor has expressed an unmodified audit opinion on the financial results.

KLRF's move to diversify into the hotel and hospitality sector may be seen as a strategic step to create additional revenue streams and potentially enhance profitability. However, the success of this venture will depend on various factors, including market conditions and the company's execution capabilities in this new sector.

Investors and stakeholders will likely be closely watching the outcome of the postal ballot and the company's progress in implementing its diversification plans.