Polyester-viscose dyed yarn manufacturer Sangam India Ltd. announced that it had completed its Rs.180 crore expansion project to double its denim capacity to 32 million meters, following the commissioning of its second denim line of 8 meters.
The Rs.180 crore expansion project has been financed through a mix term loan and internal accruals.
As part of expansion plan, it had set up a two lines of denim for 8 million each. The first line was commenced production in November 2011, while the second one was commissioned recently.
The company has installed 2,304 rotters for open ended spinning along with of 300 mtpa knitting capacity of 7200 mtpa texturizing yarn capacity at its existing facilities at Bhilwara in Rajasthan. The company has also modernized its processing division by replacing new processing machines.
For the fiscal year ended March 31 this year, the company clocked a net profit of Rs.17 crore on net sales of Rs.1,417 crore, compared with a net profit of Rs.57 crore on net sales of Rs.1,172 crore last year.
Commenting on the development, Chairman R.P. Soni, said, "With completion of this expansion project, we plan to launch special fancy denim and enter high value added products like cotton lycra, which offer better realization and have a high demand"
He added, "Going forward, the new capacity expansion will help the company to generate additional revenues in excess of Rs.300 crore annually."
At the BSE, Sangam India shares are currently trading at Rs.46.25, up 3.58 percent from the previous close.
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