Sangam India Ltd. (SIL), one of India’s foremost producers of PV dyed yarn and seamless apparel, has announced expansion plan of Rs. 137.25 crores in its manufacturing facility. This expansion plan approved by the Board of Directors will witness infrastructure development at SILs manufacturing facility in Bhilwara, Rajasthan. The move is aimed at increasing the capacity of their cotton yarn business by 47% and knitted fabric business by 28%.
The expansion funds will be strategically phased out over FY21-22. The planned manufacturing expansion is expected to witness an increase in revenue potential by 15% from FY2022-23 year of implementation. The total cost of the expansion project is funded partly by Term Loans of Rs. 102.00 crores and balance Rs. 35.25 crores by internal accruals. The expansion program will result in installation of 32832 spindles and 6 knitting machines for the manufacturing of cotton yarn and knitted fabric.
Mr. S. Modani, Managing Director, Sangam India Ltd., commented on the expansion: “Despite the two unprecedented and challenging years of pandemic, we are considerably satisfied with the performance of Sangam India Ltd. (SIL) wherein our FY20-21 revenue stood at 1353.55 crores. Going forward with the machinery capacity development we plan to achieve an approximate increase of 15% in our overall business. After we have set foot in this phase of our infra-expansion, SIL is aiming to strategically leverage the D2C market and the digitized textile space to further elevate our reach and supply in India & overseas.”