Sangam to invest Rs 707.40cr for expansion

New Delhi, Nov 19: Sangam India Ltd seeks to further increase its on-going expansions plans by Rs 167.40 crore, aggregating to Rs 707.40 crore by December 2007, to add 51,840 spindles for manufacturing polyester vinyl yarn and 12 knitting machine.

The increased cap expenditure would be financed through term loan under Technology Upgradation Fund Scheme (TUFS) and mix of equity and internal accrual. The company has already tied up the rupee term loan of Rs 125 crore at competitive interest rate.

With this expansion plan, the total capacity of spindles will increase to 2,11,584 and the total number of weaving and knitting machine to 279.

Sangam has also bagged new orders worth Rs 81 crore, taking the total order book position to Rs 100 crore. The fresh orders include export contracts worth Rs 36 crore from its customer in Turkey, Poland, the UK and Egypt.

Out of the total orders, Rs 45 crore orders have been secured from large domestic fabrics manufactures. These orders are to be executed in the next 3-4 months.

''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 Chairman R P Soni said.

It is looking towards value added business segment in near future which will further strengthen its leadership position and add growth to its business model to become a complete integrated textile player.

The company said its existing Rs 540 crore expansion plans have progressed on schedule and will reflect in revenue growth in the coming quarter.

UNI