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Sangam India, a textile company, will invest Rs 180 crore to double its denim capacity to 32 million metres, set up texturing yarn production capacity of 7,200 tonnes per annum and install 2,304 rotors for open ended yarn at Bhilwara in Rajasthan.
The company will raise Rs 135 crore at a subsidised interest rate of 6.75 per cent through Technology Upgradation Fund (TUF) and will use internal accruals for the remaining fund.
Mr L.L. Soni, Vice-President, Sangam Group, said the company expects to complete the project by December and target the growing demand for fancy denim which is produced by blending cotton, poly viscose, lycra and texturing yarn.
“We will also spend Rs 50 crore over three years to establish its recently launched Sangam Suitings. The suits made of poly viscose and cotton has been well accepted,” he said.
Sangam Suiting has several brands such as Savana, Wills & Scott, Cavalier, Signet and Linovita under its fold. It recently launched a new anti-bacterial and anti-moisture range Glacier.
RETAIL VENTURE
The company will take a decision on setting up a garment facility and venture into retailing in six months as the Sangam brand is fast being acknowledged, said Mr Soni.
The investment for setting up a five lakh piece a month garment factory will cost somewhere between Rs 50-60 crore excluding the land cost, he said.
Allying the fear of competition from Bangladesh and China, Mr Soni said the availability of skilled labour has been one of the major concerns for the industry. It is not possible for Bangladesh or China to capture the entire Indian market which is largely brand conscious.
The Government has recently removed 48 textile items from the list of protected goods India maintains under its free trade agreement with SAARC countries. These 48 items accounted for nearly 85 per cent of India’s present imports from Bangladesh.
The textile industry’s cost competitiveness in the export market has been tested with the rising interest rate, cost of labour, power and raw materials. The industry spends on skilled and casual labours have increased substantially after the Government’s National Rural Employment Guarantee Act, said Mr Soni.
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