Dr. SN Modani
Managing Director & CEO Sangam India Ltd.
Technology integration and sustainability drive our growth and success
Sangam India Ltd. is a leading producer of cotton, OE yarn, PV-dyed yarn, and ready-to-stitch fabric. With a production infrastructure of over 2,36,000 spindles and 3,000 rotors, the company annually manufactures 35 million metres of PV fabric and 48 million metres of denim fabric. It has also introduced a seamless garment manufacturing plant with 52 knitting machines capable of creating 5.4 million items per year. Dr SN Modani, the managing director of Sangam India, emphasises capacity building, ethical practices, and advanced technologies as the future of the textile sector in an interview with Fibre2Fashion.
The global textile industry has been witnessing rapid changes in terms of consumer preferences, technological advancements, and environmental concerns. What steps has your company taken to maintain competitiveness and sustainability in the textile industry?
We have made the textile industry’s competitiveness a top priority since 1984. As a leading manufacturer of polyester yarn and suiting, we focus on product innovation and eco-friendly practices. With exports to 58 nations and produce 0.6 million metres of fabric daily. Our annual production includes 45 million metres of denim, 95,000 tonnes of synthetic materials, and 12,000 tonnes of cotton yarn. We have invested in solar energy since 2003 and entered the retail garment segment in 2014, with C9 Airwear, our first B2C venture. Our products are sold by major brands, and we emphasise ESG practices and cleaner energy sources like solar power. Our expansion plans include generating up to 10/11 MW of solar power. We have cut back on borrowing costs and anticipate a financial position of ₹900 crore.
What are some of the emerging trends in the textile industry that you believe will have a significant impact on the way products are manufactured, marketed, and consumed in the coming years?
With rising fashion consciousness and sustainability awareness, there is a demand for manufactured fibres. To enhance sustainability, we prioritise polyester and its blends like polyester-lycra in denim. Polyester is expected to replace polyester-cotton blends due to declining cotton supply and fluctuating prices. While the government works on improving cotton seeds, India should focus on increasing yield through dense farming and collaborating with scientists. Urgent proactive measures are needed for a sustainable future in the textile industry.
How does your company prioritise sustainability and ethical practices within the textile industry while still maintaining profitability and meeting consumer demands, and what initiatives have you implemented to promote employee well-being and environmental responsibility?
Our company is ESG-compliant and is committed to further creating high standards of working conditions for our 12,000+ employees. In our manufacturing units, we have achieved zero liquid discharge with 97 per cent water recycling and the remaining 3 per cent is used as salt for cement plants. We now use mustard husk as fuel and strive to enhance facilities through initiatives for our 800 female workers. With the support of our loyal workforce, we have been able to prioritise profitability as well as social and environmental sustenance and gradual growth as we believe in working from the heart for the collective good.
How has your company embraced technology to maintain a competitive edge in the textile industry, and what strategies have been implemented to ensure quality control and efficient delivery times as you continue to grow?
We implemented SAP Hana and worked with AWS for AI, starting in 2008, when our turnover reached ₹800 crore, to support our growth. Technology integration helps us maintain control and efficiency as we expand. We use automated systems for remote monitoring and addressing machine issues, supported by a skilled team of mechanical engineers. We focus on high-quality products, minimal rejections, and reducing delivery times through in-house processes. To stay competitive, we aim to increase our turnover by 10-15 per cent every three years through capacity building and adaptability to market changes.
Sangam India Limited has grown significantly in recent years, both locally and globally. What key factors do you attribute to the company’s success, and how do you plan to maintain this growth trajectory in the coming years?
We have invested ₹900 crore in expanding our capacities, including cotton, denim, and synthetic weaving. We expect to seamlessly complete our garment PLI-1 project by 2024, and deliver the anticipated successful results by 2025-2026. We are focused on growing in the domestic market and target to increase exports beyond the current range of 27-30 per cent. Our growth strategy aims for a turnover of ₹5,000 crore by 2025-26. We emphasise strongly on brand presence, market commitment, and a dedicated workforce. At SIL we follow the RCP model to optimise resources and improve performance. Technology is an open-door policy, and a lean organisational structure ensures efficient coordination and resource allocation. We aim to increase volume and achieve desired results with our solid foundation.
With five production bases across the Bhilwara district, how do you ensure seamless coordination and efficient resource allocation across these facilities?
With a lean and efficient organisational structure, we use technology for seamless communication among our corporate employees. Our open-door policy fosters flexibility and collaboration. Our highly qualified team members are leading our company towards exponential growth to increase our turnover from ₹2,700 crore to over ₹5,000 crore within the next 3-5 years. Despite exporting to 58 countries, our focus now is on increasing volume further. We believe that sincere efforts and dedication will lead us to achieve the desired vision with exceptional results.
As one of the largest producers of PV-dyed yarn at a single location, how do you ensure consistent quality and innovation in your products?
We continuously upgrade our systems and facilities for consistent quality and control. We modernise with auto-doffing ring frames in PV-dyed yarn to save energy and labour costs. Our company excels in productivity, energy costs, and manpower costs. Our cautious growth approach is recognised by bankers, considering our track record and plans. We further aim to strategically expand, consolidate, and plan for further growth. With a solid foundation, our focus is sharply on continued development.
Looking ahead, what are some of the key challenges and opportunities you foresee for the textile industry, and how is your company positioned to address these?
Cotton production accounts for only about 30 per cent of our company’s volume, and we have alternative options available. The growth of cotton production in Rajasthan is advantageous for our projects in the Bhilwara region, and we are also in the position to source cotton from neighbouring states such as Gujarat and Madhya Pradesh. Older cotton plants may face challenges due to higher power costs and depreciation, potentially leading them to switch to other products like 100 per cent polyester or viscose. However, this shift could create opportunities for new players in the Indian manufacturing sector who can produce cotton at a lower cost. We have already devised plans to adapt to this evolving landscape, and it can be managed effectively by companies that make informed decisions and adjust accordingly.
Do you have any plans for further expansion or entering new markets?
We actively discuss strategic decisions in our board meetings and will provide updates accordingly. Our company is committed to growth and determining the optimal pace of expansion, with a vision that extends until 2033. Foreign investment in India has increased since 2021, underscoring the country’s strong potential.
Projections indicate that by 2030, India is expected to become the world’s third-largest economy, surpassing Japan and Germany, with a GDP of $8 to $9 trillion. This growth trend is set to continue, with India projected to surpass China and become the second-largest economy by 2047. India is poised to emerge as a global leader in the 21st century.
Our spinning industry and other sectors are performing well, contributing to India’s economic growth. The garment sector, in particular, is set for significant expansion, supported by initiatives like PLI 2.0.
Interviewer: Shilpi Panjabi
Published on: 31/05/2023
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
