Sangam India - Growth Through Expansion

Sangam India To Hike Capex Plans

Sangam India Ltd has announced that the Company plans to further increase its on-going expansions plans by Rs 167.40 crore aggregating to Rs 707.40 crore, board of director has approved the expansion plan in their board meeting dated October 31, 2006. Under its expansion plan the Company plans to add further 51840 spindle for manufacturing PV yarn and 12 Knitting machine to add further value to its cotton yarn business. The increased cap expenditure would be financed through term loan under TUFS and mixed of equity & internal accrual Company has already tied up the Rupee term loan of Rs 125 crore at competitive interest rate. Company targeting to complete this expansion plan by Dec 2007. With this expansion plan, the total capacity of spindles will increase to 211584 and the total number of weaving & knitting machine increased to 279.

The Company on November 16, 2006 has announced that the Company has bagged new orders worth Rs 81 crore, thus taking the total order book position to Rs 100 crore. The Company has bagged fresh export orders worth Rs 36 crore from its customer in turkey, Poland, U.K. & Egypt. Further, the Company has bagged orders worth Rs 45 crore from large domestic fabrics manufactures. These orders are to be executed in the next 3-4 months.

Elaborating on Company's expansion strategy, Mr. R P Soni, Chairman, of the Company said, "The Company's plans are to increase its focus on exports market in post-quota scenario. With the products getting approved in global markets, we look forward to continue receiving large number of export orders from international firms," Company is further looking towards value added business segment in near future which will further strengthens its leadership position, add the growth to its business model and translate Company in to the complete integrated textile player.

Meanwhile, Company's existing Rs 540 crore expansion plans has progressed on schedule and it will reflect in revenue growth in coming quarter.