INTRODUCTION A Textile Conglomerate, the Bhilwara (Rajasthan) based Sangam Group of Companies (SGC) is today a name synonymous with

excellence in textiles. It is a "Complete Textile House" that is diversified into spinning, weaving, knitting, flock fabric and processing having state of art. It is a prominent and leading manufacturer, exporter and supplier of world-class Suitings, Denim fabric, Flock Fabrics and Cotton and synthetic yarns from India.

It offers a product range that defines quality, superiority and unmatched excellence. It is a professionally managed group having complete technical expertise and a web of ultra-modern textile production machines. It is an IS/ ISO 9001:2000 certified company producing world's finest fabrics.

Based in textile city, Bhilwara, it has one of the largest unit in India to produce dyed yarn using state-of-the-art machinery. The company exports its premium product range to Turkey , Belgium , Spain , MiddleEast, and various other countries.

Constitution

Public Limited Company

Date of Incorporation Date of commencement of business Line of Activity

29.12.1984 02.05.1985

SILS business activities spread across the textile value chain including PV Dyed Yarn Cotton Yarn Synthetic Fabric Flock Fabric ( Home Furnishing) Knitted Fabric Denim Fabric Generation of Captive Power

Registered Office

Opp. Higher Secondary School, Industrial Estate Pur Road, Bhilwara- 311 001 ( Rajasthan)

Principal & Head Office

B 306-309, Dynasty Business Park A.K. Road, Opp. Sangam Cinema Andhri (East),Mumbai- 400 069 ( Maharastra)

Manufacturing Facilities

SPINNING DIVISION 1.Village Biliya Kala, 14 K.M. Stone Chittor Road, Bhilwara 2. 91 K.M. Stone, N.H. 79, Village Sareri, Bhilwara Weaving Flock Fabric & Processing Division 1.Village Atun, Chittor Road, Bhilwara

Present Capacity (As on 31.03.2010)

Spindles Rotors Weaving Machines Knitting Machine Process House Home Furnishing

: 1,93,920 : 1944 : 257 : 12 : 28 mn. Metres Per Annum : 2.5 mn. Metres Per Annum

Captive Thermal Power Plants of 31 MW Web Site www.sangamgroup.com

E Mail

bhilwara@sangamgroup.com

Promoters

R.P. Soni (Chairman) S.N. Modani (Managing Director)

Contact

+911482 249071-76 +911482 249077

BRIEF HISTORY

1985 1991 1993 1995

A weaving unit, under name of Arun Synthetics Pvt. Limited Converted in to a Public Limited company and name changed to Sangam (India) Limited. IPO of 3.2 Million shares at Rs.15 each. Backward integration in to spinning ( 17280 Spindles for PV dyed yarn installed ) Added 11520 Spindles in spinning capacity & 3.8 MW FO Based Power Plant installed. Added 8640 spindles, 16 Weaving machines and 1.9 MW FO based power plant. Added 26592 Spindles, and 10 MW Coal Based Thermal Power Plant. Major expansion plan initiated of Rs.7074 Million for installation of 147552 Spindles,12 Knitting machine,140 Weaving Machines, 21 MW Coal Based Captive Thermal Power Plant & Modern Process house. Amalgamation of SPBL limited (A process house and Flock Fabric producer) with the company. Implementation of expansion plans. Major expansions completed

1995-98

2000

2002-03 2005-06

2006 2006-09 2008-09

About the Directors & Management

Name Mr. R.P. Soni Mr. S.N. Modani Mr. V.K. Sodani Mr. A. Karati Mr. Ramavtar Jaju Dr. Tapan Kumar Mukhopadhyay

Designation Chairman Managing Director Executive Director Director Director Additional Director

Status Promoter Promoter Promoter Independent Independent Independent

MANAGEMENT TEAM Mr. G.C. Jain Mr. S.M. Gupta Mr. A. K. Rastogi Mr. Anil Jain Mr. L.L. Soni President President -Works (Biliya) President -Works (Sareri) Joint President (Finance) & Company Secretary Vice President (Finance & Investor Relations) FCA, FCS B.E. B.E. FCA, FCS

FCA

Sh. R.P. Soni :-

Shri R.P. Soni, the main promoter started the textile business in 1982 by setting up a weaving unit with a capacity of 8 Weaving Machines. In 1995, he set up a spinning unit with a capacity of 17280 spindles. Over the years, the capacity has been enhanced to the present level of 257 Weaving Machines, 1944 Rotors and 193920 spindles.

The Government of Rajasthan has conferred Shri Soni with "Bhamesh Samman" in 1995. He has also been awarded with 'Textile India Development Award' by Institute of Trade & Industrial Development, New Delhi. He has been associated with Rajasthan Chamber of Commerce, Mewar Chamber of Commerce, FICCI & Textile Association of India etc. He is at present Chairman of RTMA . Sh. S.N. Modani:-

He is son-in- law of Shri R.P. Soni. He is a Management Graduate and is associated with the textile industry since 1991. He is presently MD of the company and looking after the spinning division. Sh. V.K. Sodani: He is also Son in Law of Shri R.P. Soni. He is a Chartered Accountant and associated with the company since 1995. He is a ED of the company and looking after the Weaving and processing division.

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 worlds 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%.

Manufacturing facilities

Share holding Pattern as on 31.03.2011 Sr. No. 1. 2. 3. 4. 5. Category Promoter group Mutual Funds/Insurance Companies/UTI Private Corporate Bodies FIIs/ NRI Individuals & Others Total No.of Shares 1,45,83,878 20,66,444 1,63,75,064 2,92,503 61,03,670 3,94,21,559 Percentag e 36.99 5.24 41.55 0.74 15.48 100.00

FINANCIAL HIGHLIGHTS (Rs. In Crores) PARTICULARS Revenue (Gross) Cost of Raw material Power & Fuel Employee Cost Mfg. Expenses Admin., Selling & Other Expenses Cash Profit Depreciation Interest EBT Taxes (Including Deferred Tax) EAT Paid Up Capital Reserve & Surplus Gross block Net block 200607 554.76 339.38 56.22 34.03 20.58 27.33 73.83 36.57 22.24 37.06 10.04 27.02 39.42 148.50 756.30 365.78 200708 695.05 448.19 75.57 44.66 25.85 32.43 56.05 49.10 34.11 6.75 1.38 5.37 39.42 153.87 855.00 495.71 200809 749.59 460.37 91.88 48.80 29.86 36.33 26.99 59.05 45.47 (32.16) (16.18) (15.98) 39.42 137.89 882.18 611.06 200910 854.98 497.66 101.57 57.51 34.75 32.07 89.61 63.07 41.01 26.24 9.08 17.15 39.42 150.44 903.99 564.41 201011 1171.6 6 656.17 104.26 67.59 102.06 45.36 147.59 64.00 48.63 83.29 26.70 56.59 39.42 200.16 944.49 558.79

GROUP COMPANIES

Keti Sangam Infrastructure India Limited, is JV of Keti group & Sangam group in the ratio 62:38, is developing the Ahmednagar-Aurangabad Road (4-laning) on BOT basis. This road project falls on a state highway stretch which carries highest traffic in Maharashtra as it is heaviest Industrial Zone area. The construction work is completed and the project is completed ahead of schedule (by Feb 09). Toll collection concession period is 24 years, 8 months & 21 days. The project cost is Rs.292.52 crores, which is financed by way of term loan of Rs.200 crores from banks and promoters contribution of Rs.92.52 crores. The financial position of the company for FY 09-10 is Gross Toll Receipt is 25.07 crores, Net loss after Tax is Rs.11.35 crores.

Kalyan Sangam Infratech Ltd, is a new SPV company started in October 2008, promoted by Sangam group and Keti group in the ratio 65:35, and is engaged in construction and O & M of Thane-Bhiwandi Road and Kasheli bridges which is under process. This road project connects Thane with Bhiwandi, which has a large number of industrial units and also, being an octroi free zone, is developing as the warehouse hub for Mumbai. Toll collection concession period is 23 years, 5 months & 7 days. The project cost is Rs.353 crores financed by way of term loan of Rs.225 crores from banks and promoters equity contribution of Rs.128 crores.

PKSS Infrastructure Pvt. Ltd, a SPV formed by Sangam (India) Ltd with stake of 40%, PK Hospitality Pvt. Ltd and Sahakar Agencies Pvt Ltd for Delhi Entry Point Toll Collection Project awarded by MCD, Delhi for a period of 3 years on contract of Rs.563.49 crores payable in 36 monthly installments. The financial position of the company for FY 2009-10 is Total Income is Rs.221.49 crores and Net Profit is Rs.4.22 crores and net worth of company is Rs.33.61 Crores.

Mahalaxmi TMT Pvt. Ltd, an integrated steel plant of 0.05 Million TPA at Vardha. Induction unit commenced operation. The project cost is Rs.611.42 crores, which is financed by way of term loan of Rs.430 crores from banks and promoters contribution of Rs.181.42 crores. Full Production likely to start from June, 2011.

SOCIAL ACTIVITIES

Shri R.P. Soni felt the primary needs of the people of Bhilwara and surrounding localities, under his leadership started in Bhilwara the following institutions in the health and education sectors:-

1. Smt. Kesar Bai Soni Memorial Hospital & Research Centre assisted by Apollo Hospital which is well equipped with all the modern health care and tele medicine facilities.

2. Institute of Technology and Management, which is approved by AICTE and Government of Rajasthan. It has all the modern facilities for the Engineering and MBA Students.

3. Sangam School of Excellence, which is one of the most modern education facilities in the State of Rajasthan and is affiliated with CBSE.

4. Sangam Industrial Training Centre for development of skilled manpower.

Sangam Group is producing direct employment to about 7000 people of Bhilwara and nearby area, which is a service for the cause of nation.