Textile Company Profile: Sangam India Limited

1. Sangam India Limited, Largest Single location dyed yarn producer in the country.

2. It controls a market share of 25% in the polyester-viscose segment.

3. Largest manufacturers of polyester dyed yarn in the country.

4. Polyester prices has risen by around 25% in the last 12 months. 

5. In viscose, prices have increased by around 30% in the past one year.

6. While the overall textile market is growing by 5-6% in the past five to six years, the same in PV has been around 8-9%. 

7. The four major players in the country- Sangam, Rajasthan Spinning, Sutlej Textiles and Banswara Syntex- control close to 85% of the PV market.

8. About 90% of the revenue in yarn business comes from PV while the balance comes from Denim and Cotton yarn. 

9. About 70% of the company's total turn over comes from yarn business, the balance comes from fabrics.

10. 20% of the fabrics topline comes from PV Fabrics , about 6-7% from denim

11. Total Fabric Cap is 30 mn meters. PV accounts for 20 mm.

12. USP of Sangam- As per their CFO "Our strength lies in our location - Bhilwara. Around 50% of our capacity is sold in the vicinity of 5 kms. So, our sales cost comes down as does our costs on freight and insurance. We can also control our debtors in a much better manner as our inventory is pretty low. We maintain finished goods inventory of only 3-4 days while our raw material inventory is for one month. Therefore, our working capital is only around Rs1.8bn out of the topline of Rs8.5bn. Normally, working capital of a textile company is 30-40% of the topline. Our inventory cycle and debtor cycle are the lowest in the industry. We control the pricing power in polyester viscose yarn, as our market share in 2/15 and 2/18 count yarn is close to 65%. That is why our operating margin is the highest in the industry. There is a gap of 3-7% in our operating margin and that of the rivals"

13. Global PV Market: The global PV market is mainly controlled by India, Turkey and Brazil. Around 70% of the world’s PV market is controlled by India while the balance is accounted by Turkey and Brazil. Globally, the share of PV in textiles is less than 1%. In India, it is less than 7-8%. It is a very small and niche segment.

14.  Right now their capacity utilization is around 85-86% which is much less than targeted 92-93%.

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Rising Prices of Denim in India

Denim Prices

1. Denim Makers have raised prices by 10-15% since beg of April

2. Most of them use cotton of fiber length of 12mm to 24 mm.

3. Raw material accounts for 50% of their input cost.

4. The price of SSC Kalyan V-797 have surged by nearly 25% to a level of 21000 per Candy from Rs. 17000 per candy.

5. Denim Prices have increased to 93-95 per meter from 84-86 Rs. per meter depending upon the quality. Also the prices have increased from 90-100 Rs. per meter to 110-115 Rs. per meter.

6. Margin is higher for those denim fabric manufacturers who buy cotton yarn instead of producing themselves.

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Making Fancy Denim- Amsler Slub, Multicount and Multitwist Yarn

Most of the Cross-Hatch Denim is produced on Amsler Slub or multi-count yarn.

Here are some examples:

Amsler is a swiss fancy-yarn machine manufacturing company. The fabrics produced of the yarn are becoming synonymous with the name of the company

What is Amsler Slub

Amsler yarn can be made on open end or on a ring spinning. 

Mostly amsler slub effect in denim is produced on open end. Thus this is an attachment to open end spinning that allows slub and multi-twist effects at less cost than true ring spun yarn.

The basic problems in producing slub yarn can be enumerated as follows (source):

1. Weak Places in the Yarn: The thick place in the yarn is followed immediately by a thin place, rather than by a simple return to the basic yarn count being spun. This, in turn, creates a weak place in the yarn.  

2. Increase in Basic Yarn twist:

Increased length of the slub leads to the increased twists of the basic yarn. It is necessary to adjust the slub length to avoid basic yarn twist exceeding critical twist.  Twists in every section of the slub yarn are in inversely proportion to the square of the linear density of the corresponding section.

The Principle of Amsler effect goes like this: The Normal yarn is formed from the basic machine speed. There is a microprocessor controlled servomotor that overfeeds with a pre-programmed textile ramp.

In case of ring frame, the servo drive system is connected to the back and middle roller via a special gear box. Only at the time of slub formation the servo motor starts and additional speed is given to the drafting system. Thus the normal yarn formation is not disturbed which results in making a yarn without weak spots. 

In case of open end yarn the principle is the same, ie. excess feed which can be explained with this figure:

Multi-Count Effect

Multi-count yarn, becoming so popular in denim fabrics is produced by a special device. This effect is characterized by having controlled count changes in length ( as short as 2 meters) while maintaining a constant twist level.

Multi-Twist Effect

Multi-twist yarns are those that feature a constant count but have different levels inside yarns. These twist levels create variations in the yarn's dye intake thus creating a special fabric appearance. 

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