Sangam (India) Ltd Company Summary

Sangam (India) Ltd Summary

Sangam (India) Limited (SIL) is one of the leading producers of PV dyed yarn, cotton and OE yarn as well as ready-to-stitch fabric. The Company was incorporated in 1984 with just eight weaving machines and then has expanded to have a presence in more than 58 nations, becoming a major brand in the textile industry. Sangam is a vertically integrated textile player in India with an annual production of 48 Million metres of denim fabric and 35 Million metres of PV fabric. The Company has a highly structured manufacturing base with more than 2,63,000 spindles and 2,500 Open-End Rotors. It has established a seamless garment production plant with 58 seamless knitting machines that can create 5.4 Million items annually. The Companys flagship brands include Sangam Suiting and Sangam Denim. Sangam Suitings operates through a distribution channel and has a pan-India network of 10,000 retailers. The company manufactures synthetic suitings with an installed capacity of 59.3 lac mtr pa.The Company markets their products under the brand name Sangam and has a network of selling agents and dealers throughout the country. In Jul.94, the company offered rights (premium: Rs 12.50) to part-finance a backward integration plant, by installing 12,960 spindles to manufacture polyester-viscose dyed yarn in the count range of 2/15 Ne to 2/30 Ne. In Jan.94, the company installed 16 STB shuttleless Russian weaving machines at a capital outlay of Rs 218 lac. Installation of these machines has increased the weaving capacity from 43.95 mtr pd to 59.3 lac mtr pd. The full impact of the expansion will be felt in 1995.The companys fabric exports are picking up and it has received vast enquiries which are under negotiation. During 1993-94, the company achieved an export turnover of Rs 15.31 lac. The company has acquired land for the spinning project. Civil construction work is in full swing. Delivery of machines will start by Jan.95. Commercial production is likely to start by Mar.95. This project will also be a backward integration in the field of PV dyed yarn. In-house manufacture of raw material, a well-organised marketing set-up, unbeatble experience in the business and its locational benefits are some of the salient features of the project. During 1997-98, the company has undertaken and successfully completed an expansion programme of its weaving division by installation of 16 PU Sulzer Weaving Machines supplied by M/s Tex Trade, italy improving capacity from 113.16 lacs meter fabrics to 123.76 lacs meter per annum. The quality of fabrics will be higher in comparison to existing plant.During 1998-99, the expansion project of additional Spindles undertaken by the company is also nearing completion.During the year 1999-2000, the Company has undertaken one more expansion programme in the spinning capacities by adding of 8064 spindles for the manufacture of polyester/viscose blended yarn. The total cost of the project has been estimated at Rs. 2900 lacs. IDBI and SBI have sanctioned a loan of Rs. 1000 lacs each under Technology Up-gradation Fund Scheme. Out of 8064 spindles, 2304 spindles have been installed upto 31.03.2000. After the completion of the expansion programme, the production of yarn is expected to touch 1200 MT per month.The Company has also diversified into information technology business. Companys IT division M/s Sangam Infotech, 100% Export Oriented Unit has established office in Software Technology Park, EPIP, Sitapura Industrial Area, Jaipur (Raj.). The Company wish to foray in Software Development, Web Services, E-commerce and portal development etc.Expansion programme for 1.9 MW Power generating set,P7100 Sulzer Machines has been taken up by te company during the year.Installation of Knitting Machine project is expected to complete by the end of 31.03.2002 and the project has been financed by IDBI,ICICI,SBI and balance through internal accruals and 10% preference shares.The Company replaced the 7 Knitting machines by 16 DORNIER Weaving machines due to problems of viability of such a small sized knitting Project. Out of the 16 weaving machines, 14 of Weaving machines commissioned up to the year-end.The Company commissioned project envisaging installation of 44 imported Weaving Machines costing Rs 12.50 Crores in 2003. It expanded the spinning capacities by addition of another 14400 spindles for the manufacture of fine count yarn during 2002-03. It increased yarn manufacturing capacity by adding 15648 spindles during 2003-04.During 2003-04, the Company installed 10MW Thermal Power Plant (Petroleum Coke based) in Spinning Division for captive consumption. It installed another 14400 Spindles for the manufacture of fine count yarn, the project cost for which was estimated at Rs 35.25 Crore. It further installed 1248 Spindles along with TFOs and Autoconers in 2004. It sold 100% investment in its subsidiary Company, Sangam Capital Services Ltd., which ceased to be subsidiary of the Company in 2004. In 2004-05, it installed a 5.0 MW Wind Power Plant at Jaisalmer, Rajasthan; 16 No. Airjet weaving machines were installed during the year 2005. During 2005-06, the Scheme of Amalgamation between SPBL Ltd. with the Company was effective from 01.04.2006 by virtue of 1 Equity Share of Sangam (India) Ltd., for4 Nos. Equity share of SPBL Ltd. through the Swap Ratio. The Company allotted 12,50,062 Equity Shares to the shareholders of SPBL Limited as per the Swap Ratio approved in the Scheme of Amalgamation. The Company implemented a comprehensive expansion and diversification programme with outlay of Rs. 540 crores. It ventured into manufacturing cotton yarn and PV grey yarn business to derisk itself from concentration in dyed yam and expand its port folio of products supplied to its customers. 66912 Spindles, 90 Weaving Machines, 12 Knitting Machines were installed upto 31st March 2007. It commissioned 16800 spindles, 1684 rotors and Captive Thermal Power Plant of 15MW during the year 2008-09. During 2012-13, the Capex plan costing Rs 180 Crore was completed and new capacities of denim fabric and open end spinning became operational. Similarly, the process house Capex of Rs. 16 crore was completed resulting the increase in its processing capacity. The Company implemented its project costing Rs 76.50 crores for installation of 36 nos. Machines for manufacturing of seamless garment, 10080 spindles for manufacturing of cotton yarn and 56 weaving machines for denim fabric weaving in 2014-15. It commissioned the Seamless Garment Facility of 3.6 mn pieces/annum in 2015-16. The Companys project of Rs 135 Crores for installation of one Rope Indigo Dyeing Line with 73 new wide width imported Weaving Machines, Machinery for modernization and balancing in spinning and processing divisions and pollution control equipment was commissioned in 2017-18. In 2020-21, the Company floated a 100% subsidiary, Sangam Lifestyle Ventures Limited (SLVL) for retail business, which amalgamated with the Company effective March 11, 2022.The Companys expansion project Phase-I Cotton yarn at Spinning Unit-II, Village Sareri Bhilwara was completed which added a capacity of 10,500 metric tonnes making the total Cotton and PV yarn capacity 95,000 metric tons per annum, which started commercial production and sales in April 2022. The Company installed 3 Solar power plants of 13 MW and 1 wind power plant at Jaisalmer (Rajasthan) with 5MW capacity. Similarly, it expanded the project for installation of 81 looms for manufacture of denim fabrics at Denim Unit, Village Biliya Kalan, Bhilwara (Raj.) having total outlay of Rs 180 Crore.During the year 2021-22, Sangam Venture Limited (SVL) was incorporated on 3rd December, 2021 as a Wholly Owned Subsidiary of the Company.