Sangam India Ltd (SIL), India’s leading manufacturer of Poly viscose dyed yarn, announced a Rs 137.25-crore plan for the expansion of its manufacturing facility, according to PTI report.
This expansion plan, approved by the board of directors, will witness infrastructure development at SIL’s manufacturing facility in Bhilwara, Rajasthan.
The total cost of the expansion project is funded partly by term loans of Rs 102 crore and balance Rs 35.25 crore by internal accruals. The move is aimed at increasing the capacity of their cotton yarn business by 47 per cent and knitted fabric business by 28 per cent.
The expansion is expected to increase the company’s revenue by 15 per cent from 2022-23.
The expansion programme will result in the installation of 32,832 spindles and 6 knitting machines for the manufacturing of cotton yarn and knitted fabric.
Sangam India Managing Director S Modani said, “Despite the two unprecedented and challenging years of the pandemic, we are considerably satisfied with our performance where our FY21 revenue stood at Rs 1,353.55 crore. Going forward with the machinery, capacity development, we plan to achieve an increase of 15 per cent in our overall business.”
Modani added that after the company has set foot in this phase of the infra expansion, “we are aiming to strategically leverage the D2C (director) market and the digitised textile space to further elevate our reach and supply in India and overseas.”
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