Sangam India completes its Rs.180 crore expansion project
29 May '12
2 min read
Sangam (India) Ltd, a leading polyester-viscose dyed yarn manufacturer, announced that the company has completed its Rs 180 crore expansion project to double its denim capacity to 32 million metres, following the commissioning of its second denim Ii ne of 8 meters.
AS a part of expansion plan, the company has set up a two lines of denim for 8 million each. The first line commenced production in November 2011. While the second line commissioned recently.
The company has installed 2,304 rotters for open ended spinning along with of 3000 mtpa knitting capacity and 7200 mtpa texturizing yarn capacity at its existing facilities at Bhilwara in Rajasthan. The company has also modernised its processing division by replacing new processing machines. The Rs 180 crore expansion project has been finance~thr9lJgh a mix,term loan and Internal accruals.
Commenting on the development, Mr R P Soni, Chairman, Sangam (India) said, "With completion of this expansion project, we plan to launch special fancy denim and enter high value added products like cotton Lycra, which offer better realisation and have a high demand.” He further added, "Going forward, the new capacity expansion will help the company to generate additional revenues in excess of Rs 300crore annually.”
For the financial year ended March 31, 2012, Sangam (India) registers Rs. 20.97 per cent rise in net sales at Rs 1,417.22 crore compared to Rs 1,171.52 crore in the previous year ended March 31, 2011.
Net profit stood at Rs 17.08 crore for the period ended March 31, 2012 compared to Rs 56.59 crore in the previous year ended March 31, 2011. Export revenue of company has been increased by 21 % to 308.22 crore.
Net sales grew by 28.31 per cent at Rs 395.10 crore for the quarter ended March 411, 2012 asc6'mpared to Rs 307.92 crore in the previous quarter. Net profit stood at Rs.6:0S crare as compared to a loss Rs. 1.84 crore in the previous quarter.
Commenting on company's recent financial performance, Mr. Soni said, "In spite of challenges in the industry on account of high volatility in cotton prices and currency fluctuations, we have managed to post performance much better than other players in this segment. Once the market stabilizes, we hope to deliver better performance in the coming quarters."
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