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Sangam India plans Rs 132 crore expansion for cotton yarn

Oct 25, 2021
Sangam India plans Rs 132 crore expansion for cotton yarn

Mumbai

Sangam India Ltd (SIL), one of the foremost producers of PV dyed yarn and seamless apparel, has approved plans to invest Rs 132.25 crores in brownfield expansion in the cotton yarn segment and successfully completed the financial closure of Rs 102 crore term loan with lenders. The COD of this project will be April 1, 2022.

Sangam India Ltd has also approved the issue of up to 5.7 million warrants convertible into Equity Shares(s) of the company of the face value of Rs 10 each aggregating up to 103.00 Crore to the promoters group and Madhuri Madhusudan Kela. The company also announced that its revenue has grown more than double from Rs 311 crore in Q2 FY 21 to Rs 635 crore in Q2 FY22 with an increase of 104% as per YoY comparison.

Total sales of the company, as of September 2021 stands at Rs 1,045 crore with 37% of its revenue coming from international markets. The company’s EBITDA is Rs 76.2 crore in Q2 FY22 which is more than 208% as compared to YoY at Rs 24.7 crore and is also better than the previous quarter of June 21 at Rs 51.1 crore.

Established in 1984, Sangam India Ltd is one of the foremost producers in PV dyed yarn, cotton and OE yarn and also ready to stitch fabric. The NSE & BSE listed company produces 35 million meters of PV fabric and 48 million meters of denim fabric annually. This magnitude of production is possible with a highly organised production base equipped with more than 280,000 spindles and 4,000 rotors.

The Group has also introduced a seamless garment manufacturing facility with 52 seamless knitting machines that have the capacity to produce 5.4 million pieces per annum. Sangam started with only eight weaving machines in 1984 and is now being recognised as a leading brand in the textile industry, with a presence in over 50 countries.