Cotton, PV-dyed yarn and ready-to-stitch fabric producer Sangam India expects to achieve a revenue of around ₹4,000 crore by 2024-25, following capacity expansion at its seven production units in Bhilwara in Rajasthan, a top company executive has said.
"We recorded ₹2,730 crore revenue in FY23, and this financial year we are expecting to touch ₹3,000 crore. With our capacity expansion in various product categories, we are targeting close to ₹4,000 crore revenue by 2024-25," Sangam India Managing Director and CEO S N Modani told PTI over phone.
However, in this financial year the company's profit will be impacted as the market is under pressure following global economic conditions, he added.
The long-term debt of the company, which employs over 1,200 people, is ₹600 crore.
The company has seven production units in Bhilwara with over 2,36,000 spindles and 3,000 rotors. It manufactures 35 million metres of PV (polyester viscose) fabric and 48 million metres of denim fabric annually.
Sangam India has also introduced a seamless garment manufacturing plant with 52 knitting machines capable of creating 5.4 million items per year.
"We had a capital expenditure of Rs 900 crore for expanding production capacity in a phased manner of cotton, denim, and synthetic weaving. We have already spent ₹600 crore and this year we have plans to spend another ₹300 crore for expansion of our production units, which will be done by December this year.
"We produce 0.6 million metres of fabric daily. Our annual production includes 45 million metres of denim, 95,000 tonnes of synthetic materials, and 12,000 tonnes of cotton yarn," Modani stated.
The company, he said, continuously upgrades its manufacturing facilities for consistent quality and modernises with auto-doffing ring frames in PV-dyed yarn to save energy and labour costs.
"With technology integration we are able to maintain control and efficiency as we expand. We use automated systems for remote monitoring and addressing machine issues, supported by a skilled team of mechanical engineers. We focus on high-quality products, minimal rejections, and reducing delivery times through in-house processes," he added.
The company exports 30 per cent of its products to 58 countries and the remaining 70 per cent of products are consumed in the domestic market, he said.
Sangam India's major export destinations include Turkey, the USA, Latin America, the Middle East and Southeast Asia, said Modani.
"The market conditions are tough currently, with our exports down by around 20 per cent. However, this is compensated by 10-15 per cent growth in the domestic market. We are expecting a turnaround in exports from this month onwards. With this expansion, we are looking at strengthening our existing markets, both in India as well as overseas," he added.