Interview with Mr SN Modani

Mr SN Modani
Managing Director
Sangam Group

Bhilwara (Rajasthan) based, incorporated in 1984, a listed textile conglomerate- Sangam Group of Companies (SGC) is today a name synonymous with excellence in textiles. It is the "Complete Textile House" that is diversified into spinning, weaving, knitting, flock fabric and processing having state of art. It is a prominent and leading manufacturer, exporter and supplier of world-class Suitings, Denim fabric, Flock Fabrics and Cotton and synthetic yarns from India. The Group’s business activities spread across the textile value chain including products namely, PV Dyed Yarn, Cotton Yarn, Synthetic Fabric, Flock Fabric (Home Furnishing), Knitted Fabric, Denim Fabric, Generation of Captive Power. Sangam Group is providing direct employment to about 7000 people of Bhilwara and nearby area, which is a service for the cause of nation. Mr SN Modani, the son-in-law of the Chairman of Sangam Group- Mr RP Soni, is at the helm of the Group as Managing Director. Mr Modani has done MSc in Chemistry, a PG Diploma in Cement Technology, and an MBA. He is associated with the textile industry since 1991. He has held position of DY Chairman at The Rajasthan Textile Mills Association, Jaipur. He was Committee Member (Leaders Forum) Federation of Indian Chambers of Commerce & Industry (FICCI) during 2004-05; a Director –ICMF Indian Cotton Mills Federation in the year 2004- March 2005; President, Mewar Chamber Of Commerce & Industry, Bhilwara for year 1999–2001; Vice President Rajasthan Chamber Of Commerce & Industry, Jaipur 1999-2001; Member of HRD Committee of FICCI in 1999-2000. Besides these, he also chairs as Trustee to many charitable trusts. Speaking with Sr Editor & Correspondent of Face2Face- Ms Madhu Soni, Mr SN Modani tells us his views on market movements in the Indian textile industry, currently.

Since recent some years, Sangam Group has been playing the game really well, and now it has set target of reaching the turnover near Rs 1000 Crs. We appreciate this and would like to know, what is the recipe to this success?

Actually, the progress of the group got wheels after it ventured into backward integration by putting spinning plant in 1995. Thereafter, with swift and precision management decision making and excellent team, the company expanded timely in various phases. The key to success was completion of all the projects without time and cost over run and market vigilance. With the efficient management of resources and adequate support of company’s bankers, the company is going to achieve Rs 1000 Crore turnover in the year 2010-11.

So, what incentivizes the most; overseas or domestic market?

Both overseas and domestic markets are equally important. However, it is the domestic market which gives a better return.

How do you see overall yarn market performing?

Textile is an ingredient part of human life and yarn is the basic requirement for cloth etc. Hence, we are positive on the performance of the yarn market.

Analysts say Africa would be next boom market. Would you agree on this? If yes, what are your efforts to strengthen your Group’s presence in it?

Presently, the Company is exporting its products to Turkey, Poland, Belgium, Brasil, Portugal and Egypt, Dubai and other countries. South Africa is one of them. We are trying to expand our business in Africa continent.

Market also expectantly predicts ingress of Repo & Reverse Repo. What say would you offer on it?

At present, the differential between the Repo and Reverse Repo rate is 125 basis point. RBI would use these tools as per need of the time.

Denim Sector is seeing a huge interest from your group’s investment and capex activities, these days. What rationale, for?

The consumption of Denim Fabric is increasing day-by-day, particularly by the young population. We see demand of the same increasing.

Currently Indian cotton market is witnessing number of issues. Recent price rise to 15 to 30% is another challenge to add on. Being a manufacturer of cotton made products, what remedies you resort to maintain your profit share?

We are having only 10% revenue from our cotton yarn manufacturing. We are manufacturing speciality cotton yarn for export and our denim fabric weaving. Hence, we do not see substantial impact on our profit share due to increase in cotton prices.

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Published on: 09/08/2010

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.