Bhilwara (Rajasthan), Feb. 6
BHILWARA-based Sangam India Ltd (SIL) has identified the market of uniforms for military and para-military forces as new area for growth.
The Managing Director of SIL, Mr S.N. Modani, told
Business Linethe annual consumption of the fabric by Indian forces is about five crore metres. SIL is targeting sales of five lakh metres of cloth by the end of March 2007 and expanding it to 20 lakh metres by 2008. We plan to meet this demand with polyester viscose fabric and yarn, Mr Modani said.
"Our polyester viscose fabric has been tested by the Indian Army and found to be meeting their mandatory standards. Foreign armed forces are also interested in our products. By March 2007 we will ship an initial consignment of one lakh metres of cloth, costing Rs 83 lakh, to the Iranian Army," Mr Modani said.
"We have a Rs 541-crore expansion plan, under which we intend to add about one lakh spindles and 140 weaving machines over next three years," he said. The expansion will be funded by bank loans and venture capital fund up to Rs 403 crore, under the textile upgradation scheme. Internal accruals would contribute Rs 137 crore, Mr Modani said.
For the quarter ended December 31, 2005, SIL reported a six per cent rise in sales to Rs 82.65 crore against Rs 77.80 crore in the year-ago quarter. The profit for the quarter rose by 62.65 per cent to Rs 6.75 crore (Rs 4.15 crore).
At the closing of the market on Monday, the SIL scrip closed at Rs 68.45 against the previous Rs 67.30 on the BSE.