SN Modani, MD of Sangam India says the company will cross Rs 400 crore in exports in FY17 as it has been receiving export orders for readymade garments from Latin America, Europe and South-East Asia.
Speaking to CNBC-TV18, Modani says the company will cross Rs 400 crore in exports in FY17 as it has been receiving export orders for readymade garments from Latin America, Europe and South-East Asia.
He expects the overall revenue driven by exports to rise via capital expansion and margins to improve on the back of low energy and pet-coke costs.
Furthermore, new project for women garments will fuel growth going forward, he adds.
Meanwhile, he says the company has changed its business model from Business-to-Business (B2B) to Business-to-Customer (B2C) in the seamless garments segment.
Below is the verbatim transcript of SN Modani’s interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Latha: Can you tell us how business is for your textile sector especially for the blue denim. We see a lot of slowing of export destinations, how are your exports doing?
A: At Sangam, the exports growth will take place. Last year we had around Rs 330 crore of exports, this year we will cross more than Rs 400 crore. We are getting growth particularly on yarn, photovoltaic (PV) fabric as well as in denims also. The new venture what we started six months back, for that also we are getting a lot of export orders throughout the globe.
Latha: Which destinations, which countries are your export destinations?
A: We are exporting close to 58 countries our yarn and fabric as well as denims – Latin America, Europe, even American market, Mexico and Egypt and South, the Gulf also and South East Asia also.
Sonia: You said Rs 400 crore of exports this year which would mean a 21 percent growth compared to last year. What about in FY17, what kind of percentage growth do you think you can do in exports and in your overall revenues?
A: Our overall revenues will be up by 20 percent FY17 reason being because Rs 98 crore capex is going on in which we are adding 27,000 spindles for making value added special viscose melange yarn and PV yarns and we are also expanding in the denim where we are putting one more line to produce 10 million meters fabric per annum and also, 74 weaving machines to increase the weaving capacity to 18 million meters in PV suiting’s. So, we are expanding all the three segments where we can put more value addition because our yarn can be converted into fabric and of course will be exported and domestic sale will also take place.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.