Sangam plans Rs 137 cr yarn expansion

Sangam India Ltd (SIL) plans to invest Rs 137.25 crores to expand its manufacturing facility at 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 FY 21-22. The planned manufacturing expansion is expected to witness an increase in revenue potential by 15% from FY 2022-23 year of implementation. The total cost of the expansion project is funded partly by term loans of Rs 102 crore and a balance Rs 35.25 crore by internal accruals. The expansion program will result in the installation of 32832 spindles and 6 knitting machines for the manufacturing of cotton yarn and knitted fabric.
Commenting on the expansion, S Modani, Managing Director, Sangam India Limited, said, “Despite the two unprecedented and challenging years of the pandemic, we are considerably satisfied with the performance of Sangam India Limited wherein our FY20-21 revenue stood at Rs 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 digitised textile space to further elevate our reach and supply in India & overseas.”
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