| "We will invest Rs 300 crore in adding 97,000 spindles, taking the aggregate capacity to 1.6 lakh spindles," said R P Soni, chairman, giving the break-up of the investment. |
| The company is also adding 140 weaving machines for about Rs 80 crore. AS much as Rs 70 crore will be invested in setting up a processing house with a capacity of about 80,000 tonne per day. As of now the company outsources its processing requirements to sister concern, SPBL. |
| The investment marks Sangam's entry into cotton yarn to become "a complete yarn solutions company." |
| About 14,000 cotton spindles will be operational by the end of this month and another 17,000 by March-end. Moreover, almost 65,000 PV spindles will start operations by October, said Soni. |
| The company already has a 10-mw captive plant but with the expansion increasing its energy needs, Sangam is investing Rs 90 crore in the new 21 mw power plant. |
| "About Rs 400 crore will be raised under the government's TUFS and Rs 136.4 crore through internal accruals," said Soni. Post the expansion, Sangam will be among the top five PV manufacturers globally, claimed Soni. |
| With the capacity addition, Sangam will start focusing on the export market more. Till now, the company used to sell about 15 per cent of its PV and 30 per cent of its fabric in the overseas market. |
| Of the newly added capacities, it plans to export 30 per cent of PV and 50 per cent each of cotton and fibre produced. The company expects 70 per cent growth in its exports this year from last year's Rs 42 crore. |
| The company has also tied up with the defence department to supply fabric. Till December 2005, Sangam had supplied four lakh metres to Indian Army and Navy. |
| "Our target is to sell 20 lakh metres to the defence forces in financial year 2007," said Soni. |
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