Kovilpatti Lakshmi Roller Flour Mills Seeks Shareholder Approval for Expansion into Hotel and Hospitality Sector

Kovilpatti Lakshmi Roller Flour Mills Limited (KLRF), a company primarily known for its flour milling operations, is taking steps to diversify its business portfolio. The company has initiated a postal ballot process to seek shareholder approval for altering its Memorandum of Association to include hotel and hospitality business operations.

Key Details of the Postal Ballot

Voting Period: The remote e-voting period runs from November 19, 2025 to December 18, 2025.
Purpose: To consider and grant approval for the alteration of the objects clause of the Memorandum of Association of the Company.
Resolution Type: Special Resolution

Proposed Changes

The company aims to add a new sub-clause (7) to the Objects Clause (III)(A) of its Memorandum of Association. This addition would allow KLRF to:

Carry on business as hoteliers, hotel proprietors, and managers
Operate restaurants, cafes, and various food and beverage establishments
Engage in tour operations and event management
Construct, acquire, and maintain hotels, resorts, and other hospitality-related facilities

Strategic Implications

This move signals KLRF's intention to diversify its revenue sources and potentially enhance profitability through expansion into the hotel and hospitality sector. The company's board views this as a strategic expansion that could open up new growth avenues.

Voting Process

Shareholders can cast their votes electronically through the remote e-voting system provided by MUFG Intime India Private Limited. The company has appointed Sri. M.D. Selvaraj, FCS, as the Scrutinizer to ensure a fair and transparent voting process.

Importance for Investors

This proposed alteration represents a significant shift in KLRF's business strategy. Shareholders should carefully consider the potential impacts of this diversification on the company's future operations and financial performance before casting their votes.

The results of the postal ballot will be announced within two working days from the conclusion of the remote e-voting period and will be available on the company's website as well as communicated to the BSE Limited.

As KLRF looks to venture beyond its traditional flour milling business, this move could mark the beginning of a new chapter in the company's growth story, subject to shareholder approval.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.69%	-8.79%	-1.39%	+2.46%	-13.49%	+201.55%

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:

Metric	Q2 FY2025-26	Q2 FY2024-25	Change
Profit	₹75.37 lakhs	₹(61.17 lakhs)	Turned Profitable
Revenue from Operations	₹10,384.58 lakhs	₹10,904.49 lakhs	-4.77%

For the six-month period:

Metric	H1 FY2025-26	H1 FY2024-25	Change
Profit	₹438.90 lakhs	₹(290.86 lakhs)	Turned Profitable

The company operates through two segments:

Segment	Q2 FY2025-26 Revenue
Food Division	₹7,771.57 lakhs
Engineering Division	₹2,665.07 lakhs

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:

Conducting a postal ballot process through remote e-voting to obtain shareholder approval for altering the Objects Clause of the Memorandum of Association.
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.