The company posted a record revenue of Rs 635 crore in Q2FY22 and has raised Rs 103 crore
Sangam India Ltd. (SIL), one of the foremost producers of PV dyed yarn and seamless apparel, announced that the company has approved the issue of up to 57,00,000 warrants convertible into equity shares(s) of the company of the face value of Rs 10, each aggregating up to 103 crore to the promoters’ group and Madhuri Madhusudan Kela. The company also announced that its revenue has more than doubled from Rs 311 crore in Q2FY21 to Rs 635 crore in Q2FY22 with an increase of 104% as per YoY comparison.
The total sales of the company as of September 2021 were Rs 1,045 crore with 37% of its revenue coming from the international markets. The company’s EBITDA is Rs 76.2 crore in Q2FY22 which is more than 208% as compared to YoY at Rs 24.7 crore and is also better than the previous quarter of June 2021 at Rs 51.1 crore. The company has also approved a plan of Rs 137.25 crore worth brownfield expansion in the cotton yarn segment and successfully completed the financial closure of a term loan of Rs 102 crore with its lenders. SIL’s main business activities are textile and garment manufacturing. The group has expanded its portfolio into a full value chain in textile, manufacturing of yarn, fabric, fabric processing & seamless garment, etc.
The company has built four state-of-art manufacturing facilities situated in Bhilwara and Chittorgarh, Rajasthan. Established in 1984, Sangam India is one of the foremost producers in PV dyed yarn, cotton and OE yarn and also ready-to-stitch fabric. The NSE and BSE-listed company produces 35 million metres of PV fabric and 48 million metres of denim fabric annually.
This magnitude of production is possible with a highly organised production base equipped with more than 2,36,000 spindles and 3,000 rotors. The group has also introduced a seamless garment manufacturing facility with 52 seamless knitting machines that have the capacity to produce 5.4 million pieces per annum. Sangam India started with only eight weaving machines in 1984 and is now being recognised as a leading brand in the textile industry, with presence in over 50 countries. Sangam Group has celebrated many such milestones in its journey so far. Some of them include backward integration to spinning in 1995 with 17,280 spindles of PV dyed yarn and further increasing it to 11,520 spindles in 1998. In 2003, the company built a 10 MW coal-based captive power plant by adding 35,232 spindles.
In 2009, it installed 1.13 lakh spindles, 130 weaving machines, 12 knitting machines and captive thermal power plants of 6 and 15 MW. The company’s major expansion kick-started in 2014 as the group saw an increase in denim capacity to 35 million metres per annum as well as installation of state-of-the-art seamless garment machines with a capacity of 3.6 lakhs pieces per annum. The group’s flagship brand, Sangam Suitings, is operating through a distribution channel and has pan-India network of 10,000 retailers. Apart from Sangam Group’s dynamic business endeavours, the group also is actively involved in social welfare. Currently, the group is supporting a charitable trust which operates a 100-bed hospital for the needy. The group also established a university having world-class infrastructure and an IB World School in Bhilwara, Rajasthan.