Sangam to invest Rs 541 cr for capacity expansion

29 Mar '06

2 min read

Rajasthan-based Sangam (India) Ltd Rajasthan, one of the largest polyester-viscose dyed yarn manufacturers, is going in for capacity expansion plans with an increase in investment from Rs 400 crore to Rs 541 crore.

The expansion is to install additional 40 weaving machines, a captive 21 Mw thermal power plant and additional processing machine.

The company will get term loans from bankers to fund the expansion.

Sangam (India) will get a 5 percent interest subsidy on the loan amount under the Technology Upgrade Fund Scheme (TUFS) of the Centre.

The ongoing expansion plan of the company has progressed so far as per schedule with 13,200 cotton spindles and 90 weaving machines having started operations from January.

The company expects to install 18,000 more spindles by end of this month.

Chairman R P Soni said the company's future plans are to focus on exports and defence garment market in post-quota scenario.

A large number of export inquiries from international firms have been received by the company on account of low-cost advantage.

Sangam (India) has achieved an export growth rate of 156 percent in third quarter ended December 2005.

It registered a rise of 65 percent in exports at Rs 48 crore in first nine months of the current fiscal year compared to Rs 29 crore in the corresponding period last year.

Soni added that they were targeting a growth of 70 percent in export on year-on-year basis this year.

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