Update on Expansion Plan: The company is executing Expansion & Diversification Project having an aggregate outlay of Rs. 707 crores in which installation of 1,47,552 Spindles, 140 Weaving Machines, 12 Knitting Machines, Captive Power Plant of 21 MW and a Modern Process House have been envisaged.
The company has commissioned 66,912 Spindles, 90 Weaving Machines, 12 Knitting Machines have already been installed upto 31st March 2007, the full impact of which will be reflected in the current year.
During the quarter, the company has installed 20,000 spindles and 20 weaving machines which will start commercial production from Q2FY08. The company expects to add another 30,000 spindles by Q2FY08. The work of installation of remaining part of the project is progressing as per schedule. The installation of Captive Thermal Power Plant is nearing completion.
Outlook: Mr R. P. Soni, Chairman, said, “Going forward Sangam will benefit from the reduction in the power costs due to 100% captive power consumption. We will improve our efficiencies by better quality of power, which will enhance our utilisation rates. The contribution of earnings in the fabric division should also lead to better profitability. Supply Agreement with Riopele Texteis is encouraging and the company believes that it should be in a position to make sizeable contribution to net sales in the coming quarters.”
Update on Supply Agreement with Riopele Texteis: During the quarter, Sangam India had announced the supply agreement with Riopele Texteis, Portugal. Under the agreement, Riopele Texteis will outsource high value added polyester viscose bi-stretch lycra fabrics from Sangam (India). In turn, Sangam (India) will outsource technical expertise and designing pattern fromRiopele Texteis S.A. Initially, the agreement will be for period of one year and subsequently renewed mutually based on performance.
Order Book Position: The company's products have been accepted swiftly in domestic & global markets The company has strong order book position of Rs 130 crore out of which Rs 65 crore from overseas markets.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
