MoU is aimed to launch multiple manufacturing projects across a 100 acre land in Bhilwara
New projects would create employment to over 10,000 people across the state
Sangam India Ltd. (SIL), one of India’s foremost producers of PV dyed yarn and seamless apparel, has announced that it has signed a Memorandum of Understanding (MoU) with the Department of Industries Commerce, Government of Rajasthan, by its newly formed wholly owned subsidiary Sangam Venture Limited. The MoU would aim at an investment to the extent of INR 1,521 crores from Sangam (India) Limited and wholly owned subsidiary Sangam Ventures Limited to setup multiple manufacturing units focussing on Spinning, Weaving, Garments, Knitting and Processing over 100 acres of land in Bhilwara district of Rajasthan.
Speaking on this occasion Dr. S.N. Modani, Managing Director & CEO, Sangam India Limited said, “We are extremely proud to be closely associated with the Government of Rajasthan on this important collaboration. The textile sector of India needs a major impetus, especially after the turbulent times faced by the industry during the Covid-19 pandemic. With this MoU, Sangam India is charting out an aggressive expansion strategy over the course of next 2 years, starting with launching multiple manufacturing projects in Bhilwara, which would generate direct/indirect employment over 10,000 people. This investment of INR 1,521 crores would be funded through a combination of internal accruals, raising fresh equity and debts via financial institutions.”
Sangam India had recently announced an expansion plan of INR 137.25 crores to increase the existing capacity of their cotton yarn business by 47% and knitted fabric business by 28%. Sangam India’s revenue has grown more than double from INR 311 crores in Q2 FY 21 to INR 635 crores in Q2 FY22 with an increase of 104% as per YoY comparison. The company had also raised INR 102.60 crores by issuing up to 57,00,000 (Fifty Seven Lacs) warrants convertible into Equity Shares(s) of the Company of the face value of Rs.10/- each aggregating up to 102.60 Crore to the promoters group and Smt. Madhuri Madhusudan Kela.
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