Sangam (India) to invest Rs120 cr into seamless garments business

Sangam (India) Ltd, a Bhilwada- based integrated textile firm has decided to foray into seamless garment business for which it plans to set up 10,000 spindles for slub yarn and mercerise unit to manufacture 10,000 pieces of seamless garment per day in next financial year. The investment involve in this venture will be to the tune of Rs120 crore.

Decision to enter into seamless garment business was taken up as the seamless knitted garments are used worldwide in wellness wear, yoga wear, sportswear, intimate wear, body shapes and other wears.

Seamless Garment technology is advancement in apparel industry which eliminates the fabric laying, cutting and sewing process. By eliminating the cutting and sewing process, complete garment knitting provides a variety of advantages in knitting production such as saving in cost and time, higher productivity, quick response production, homogeneity and other advantage.

The Rs 120 crore expansion plans will be funded through a term loan of Rs 89.50 crore and balance through internal loans. This expansion plan is slated to complete by March 31, 2015.

The Managing Director S N Modani said that this expansion plan will add to Rs 150-175 crore to their topline from the next financial year. Also, the company is keenly awaiting new textile policy as they are further evaluating other opportunities for value added product to fuel business growth of the company.

The company also plans to install 36 circular knitting machines that would be imported from Santoni, Italy, the world leaders in seamless knitting technology.

For the June-end quarter, Sangam (India) reported a 88.05 per cent rise in net profit at Rs 11.34 crore compared to Rs 6.03 crore in the corresponding quarter previous year. Net income during period stood at Rs 372.93 crore compared to Rs 367.52 crore.

Sangam (India) is one of the few Indian companies to announce an annual dividend policy for its stakeholders. Sangam plans to pay 20-25 percent of annual net profit as dividend to shareholders from current fiscal. For the year ended March 2014, it paid a 15 per cent dividend.