Companies

Sangam India to invest ₹137 crore to expand manufacturing capacity

Suresh P. Iyengar | | Updated on: Dec 01, 2021
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Project to be funded by term loan and internal accruals

Sangam India, a leading producer of PV dyed yarn and seamless apparel, will invest ₹137 crore to expand manufacturing capacity and allied infrastructure at its plant in Bhilwara, Rajasthan.

The project will be funded partly by term loan of ₹102 crore and remaining ₹35 crore will be sourced from internal accruals. The expansion programme will result in installation of 32,832 spindles and six knitting machines for manufacturing of cotton yarn and knitted fabric. It will enhance the cotton yarn business by 47 per cent and knitted fabric business by 28 per cent.

The planned manufacturing expansion is expected to witness an increase in revenue potential by 15 per cent in the next two fiscal.

S Modani, Managing Director, Sangam India, said despite two unprecedented and challenging years of pandemic, the company’s revenue increased multi-fold in the first half of the current fiscal to ₹1,050 crore, against ₹421 crore logged last year.

Going forward, the company expects to achieve about 15 per cent increase in overall business, he said.

“After we have set foot in this phase of our expansion, SIL is aiming to strategically leverage the direct-to-consumers market and the digitised textile space to further elevate reach and supply in India and overseas,” he added.

Established in 1984, Sangam is a leading producer of PV (polyester-viscose) dyed yarn, cotton and OE (open-end spinning) yarn and ready-to-stitch fabric. It produces 35 million meters of PV fabric and 48 million meters of denim fabric annually. It has over 2,80,000 spindles and 4,000 rotors.

The Group has introduced a garment manufacturing facility with 54 seamless knitting machines that produce 5 million pieces per annum and has a presence in over 50 countries.

Published on December 01, 2021

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