Sangam India to invest Rs 1,521 cr in Rajasthan
The PV dyed yarn and seamless apparel producer Sangam India Ltd (SIL), through its newly formed wholly owned subsidiary Sangam Venture Limited, has signed a Memorandum of Understanding (MoU) with the Department of Industries Commerce, Government of Rajasthan, to invest Rs 1,521 crore in the state. Investment will be used to setup multiple manufacturing units focussing on spinning, weaving, garments, knitting and processing over 100 acres of land in Bhilwara district of Rajasthan.
Dr S N Modani, Managing Director & CEO, Sangam India Limited, said, “We are extremely proud to be closely associated with the Government of Rajasthan on this important collaboration. The textile sector of India needs a major impetus, especially after the turbulent times faced by the industry during the Covid-19 pandemic. With this MoU, Sangam India is charting out an aggressive expansion strategy over the course of next 2 years, starting with launching multiple manufacturing projects in Bhilwara, which would generate direct/indirect employment over 10,000 people. This investment of Rs 1,521 crores would be funded through a combination of internal accruals, raising fresh equity and debts via financial institutions.”
Sangam India had recently announced an expansion plan of Rs 137.25 crores to increase the existing capacity of their cotton yarn business by 47% and knitted fabric business by 28%. Sangam India’s revenue has grown more than double from Rs 311 crores in Q2 FY 21 to Rs 635 crores in Q2 FY22 with an increase of 104% as per YoY comparison.
Established in 1984, Sangam India is one of the leading 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 2,80,000 spindles and 4,000 rotors. The Group has also introduced a seamless garment manufacturing facility with 54 seamless knitting machines that have the capacity to produce 5.0 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.