Sangam India lines up Rs 707-cr expansion

MUMBAI: Sangam (India) Ltd, a polyester- viscose dyed yarn manufacturer, on Wednesday said it is embarking on a Rs 707 crore expansion programme.

The company plans to install 1,47,552 spindles, 140 weaving machines, 12 knitting machines, a captive power plant of 21 MW capacity and a modern process house, a company press release issued said here.

During the April-June quarter of this fiscal, the company installed 20,000 spindles and 20 weaving machines which will start commercial production in the second quarter. The company expects to add another 30,000 spindles in the ongoing quarter.

Work on the remaining part of the project is progressing as per schedule, the release said, adding the installation of the captive thermal power plant is nearing completion.

"Going forward Sangam will benefit from reduction in power costs due to 100 per cent captive power consumption. We will improve our efficiencies by this which will enhance our utilisation rates," company chairman R P Soni said.

"The contribution of earnings in the fabric division should also lead to better profitability," he said.

The appreciating rupee and higher interest costs pulled down the company's net profit in first quarter this fiscal to Rs 6.51 crore as against Rs 7.22 crore in the year-ago period.