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Sangam's expansion costs up - to install 40 weaving machines
13 Feb '06
2 min read
Leading polyester dyed yarn manufacturer Sangam (India) Ltd has increased its expansion plans from Rs.400 crore to Rs.541 crore, by installing additional 40 weaving machines and a 21MW thermal power plant for captive consumption and additional machine in processing.
The project will be financed through a mix of debt and equity. The company has tied with bankers for term loan to fund the expansion. Sangam (India) will get a five per cent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of Government of India.
Meanwhile, the company's on-going expansion plan has progressed as per schedule with 13,200 cotton spindles and 90 weaving machines have started operations from January 2006. The company is expected to install additional 18,000 spindles by March 2006.
Elaborating company's future growth strategy, Mr R P Soni, Chairman, said, “We plans to focus on exports and defence garment market in the post quota scenario. We have received good export inquires from a number of large international firms on account of low-cost advantage.”
Mr Soni added, “We are targeting a 70 per cent growth in export on year-on-year basis in the current financial year.” Apart from international export markets, the company is also looking for opportunities in to the supply of polyester viscose fabrics to Indian Army and other para-military forces.
The company has supplied four lakh metre fabrics in first nine months, thereby, registering a growth of 350 per cent in this segment. The total demand for market size is estimated at five crore metres per annum.
The project will be financed through a mix of debt and equity. The company has tied with bankers for term loan to fund the expansion. Sangam (India) will get a five per cent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of Government of India.
Meanwhile, the company's on-going expansion plan has progressed as per schedule with 13,200 cotton spindles and 90 weaving machines have started operations from January 2006. The company is expected to install additional 18,000 spindles by March 2006.
Elaborating company's future growth strategy, Mr R P Soni, Chairman, said, “We plans to focus on exports and defence garment market in the post quota scenario. We have received good export inquires from a number of large international firms on account of low-cost advantage.”
Mr Soni added, “We are targeting a 70 per cent growth in export on year-on-year basis in the current financial year.” Apart from international export markets, the company is also looking for opportunities in to the supply of polyester viscose fabrics to Indian Army and other para-military forces.
The company has supplied four lakh metre fabrics in first nine months, thereby, registering a growth of 350 per cent in this segment. The total demand for market size is estimated at five crore metres per annum.
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