Sangam India, a producer of polyester viscose (PV) dyed yarn and seamless apparel, has signed a Memorandum of Understanding (MoU) with Rajasthan government to invest ₹1,521 crore in its newly formed wholly-owned subsidiary Sangam Venture.
The company will set up multiple manufacturing units with a focus on spinning, weaving, garments, knitting and processing on over 100 acres at Bhilwara in Rajasthan.
SN Modani, Managing Director, Sangam India said the textile sector needs a major impetus, especially after the turbulent times faced by the industry during the Covid pandemic.
With this MoU, Sangam India is charting out an aggressive expansion strategy over the course of the next two years, starting with launching multiple manufacturing projects in Bhilwara, which would generate employment for over 10,000 people, he added.
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This fresh investment would be funded through a combination of internal accruals, raising fresh equity and debt via financial institutions, Modani said. Sangam India had recently announced an expansion plan of ₹137 crore to increase the existing capacity of their cotton yarn business by 47 per cent and knitted fabric business by 28 per cent.
The company’s revenue has more than doubled to ₹635 crore in the September quarter this fiscal against ₹311 crore logged in same quarter last year. The company had also raised ₹103 crore by issuing up to 57 lakh warrants convertible into equity shares to the promoters group and Madhuri Madhusudan Kela.
The company can produce 35 million meters of PV fabric and 48 million meters of denim fabric annually. It has over 2.80 lakh spindles and 4,000 rotors. The Group has also introduced a seamless garment manufacturing facility with 54 seamless knitting machines that can produce 5 million pieces per annum.