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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