Sangam (India) Ltd share Price

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• Incorporated in Dec.`84 as Arun Synthetics Pvt Ltd, Sangam (India) of Bhilwara was promoted by R P Soni, R K Jagetia and S N Modani. It was converted into a public limited company in Feb.`91 and the name was changed to Sangam (India). The company manufactures synthetic suitings with an installed capacity of 59.3 lac mtr pa. Sangam (India) markets its products under the brand name Sangam and has a network of selling agents and dealers throughout the country. In Jul.`94, the company offered rights (premium: Rs 12.50) to part-finance a backward integration plant, by installing 12,960 spindles to manufacture polyester-viscose dyed yarn in the count range of 2/15 Ne to 2/30 Ne. In Jan.`94, the company installed 16 STB shuttleless Russian weaving machines at a capital outlay of Rs 218 lac. Installation of these machines has increased the weaving capacity from 43.95 mtr pd to 59.3 lac mtr pd. The full impact of the expansion will be felt in 1995. The company`s fabric exports are picking up and it has received vast enquiries which are under negotiation. During 1993-94, the company achieved an export turnover of Rs 15.31 lac. The company has acquired land for the spinning project. Civil construction work is in full swing. Delivery of machines will start by Jan.`95. Commercial production is likely to start by Mar.`95. This project will also be a backward integration in the field of PV dyed yarn. In-house manufacture of raw material, a well-organised marketing set-up, unbeatble experience in the business and its locational benefits are some of the salient features of the project. During 1997-98, the company has undertaken and successfully completed an expansion programme of its weaving division by installation of 16 PU Sulzer Weaving Machines supplied by M/s Tex Trade, italy improving capacity from 113.16 lacs meter fabrics to 123.76 lacs meter per annum. The quality of fabrics will be higher in comparison to existing plant. During 1998-99, the expansion project of additional Spindles undertaken by the company is also nearing completion. During the year 1999-2000, the Company has undertaken one more expansion programme in the spinning capacities by adding of 8064 spindles for the manufacture of polyester/viscose blended yarn. The total cost of the project has been estimated at Rs. 2900 lacs. IDBI and SBI have sanctioned a loan of Rs. 1000 lacs each under Technology Up-gradation Fund Scheme. Out of 8064 spindles, 2304 spindles have been installed upto 31.03.2000. After the completion of the expansion programme, the production of yarn is expected to touch 1200 MT per month. The Company has also diversified into information technology business. Company`s IT division M/s Sangam Infotech, 100% Export Oriented Unit has established office in Software Technology Park, EPIP, Sitapura Industrial Area, Jaipur (Raj.). The Company wish to foray in Software Development, Web Services, E-commerce and portal development etc. Expansion programme for 1.9 MW Power generating set,P7100 Sulzer Machines has been taken up by te company during the year.Installation of Knitting Machine project is expected to complete by the end of 31.03.2002 and the project has been financed by IDBI,ICICI,SBI and balance through internal accruals and 10% preference shares.