Sangam (India) Limited , a prominent player in the textile industry, held its 39th Annual General Meeting (AGM) on September 19, where shareholders approved several significant resolutions. The meeting, conducted through video conferencing, saw the company taking important decisions that will shape its future trajectory.

Financial Performance and Dividend

Shareholders adopted the audited financial statements for the year ended March 31, both on a standalone and consolidated basis. In a move that will please investors, the company declared a dividend of Rs. 2.00 per equity share, demonstrating its commitment to shareholder returns despite the challenging business environment.

Board Appointments and Re-appointments

Re-appointment of V.K. Sodani

Mr. V.K. Sodani, who serves as the Executive Director and CEO of the Fabric & Garment Business, was re-appointed as a Director liable to retire by rotation. With over 27 years of experience in the textile sector, Mr. Sodani brings valuable expertise in domestic and international marketing to the company's leadership.

Re-appointment of Sudhir Maheshwari as Independent Director

Shareholders approved the re-appointment of Mr. Sudhir Maheshwari as an Independent Director for a second term of five years, from August 1 to July 31. Mr. Maheshwari, a chartered accountant and company secretary with 37 years of global experience, is currently the Founder and Managing Partner at Synergy Capital. His extensive background includes a pivotal role in the creation of ArcelorMittal, the world's largest steel company.

Corporate Governance and Compliance

Appointment of Secretarial Auditors

The AGM saw the appointment of M/s. B.K. Sharma & Associates, Company Secretaries, as the Secretarial Auditors for five consecutive years. This appointment underscores Sangam (India) Limited's commitment to maintaining high standards of corporate governance and regulatory compliance.

Ratification of Cost Auditors' Remuneration

Shareholders also ratified the remuneration of Cost Auditors, ensuring transparency in the company's financial practices.

Looking Ahead

The approvals granted at the AGM reflect Sangam (India) Limited's focus on maintaining strong corporate governance, rewarding shareholders, and positioning itself for future growth in the competitive textile industry. With experienced leadership at the helm and a clear strategic direction, the company appears well-positioned to navigate the challenges and opportunities in the coming years.

As Sangam (India) Limited moves forward, stakeholders will be keenly watching how these decisions translate into business performance and value creation in the dynamic textile market.

Sangam (India) Limited , a prominent player in the textile industry, has made significant strides in its business operations with two key announcements following a board meeting held on August 7.

Strategic Acquisition of Recycled Polyester Unit

The board of Sangam (India) Limited has approved the purchase of a Recycle Polyester Staple Fibre (RPSF) Manufacturing Unit from M/s. Eminent Dealers Private Limited for a sum of up to Rs 52.51 crores. This strategic move is set to bolster the company's position in sustainable textile manufacturing.

Key details of the acquisition include:

• Location: Village Lambia Kalan, Tehsil Banera, District Bhilwara, Rajasthan
• Installed Capacity: 45 TPD (16,020 MT per annum)
• Coverage: Meets approximately 50% of the company's daily polyester fibre requirement
• Projected Annual Savings: Rs 11.00 crores

The acquisition encompasses land, buildings, plant and machinery, furniture, fixtures, and spares. This move aligns with Sangam India's backward integration strategy and is expected to enhance operational efficiency significantly.

Strategic Implications

The newly acquired unit is poised to play a crucial role in Sangam India's value chain:

1. Raw Material Supply: The RPSF unit's production will serve as raw material for the company's other manufacturing units.
2. Sustainability Compliance: The acquisition supports compliance with global brands' recycled content mandates, including those from H&M, Zara, and Nike.
3. Cost Leadership: By securing a reliable supply of recycled polyester, Sangam India aims to boost margins and maintain cost stability.
4. ESG Enhancement: The increased use of recycled materials aligns with circular economy principles, strengthening the company's environmental, social, and governance (ESG) positioning.

New Internal Auditor Appointment

In a separate development, the board has appointed M/s. Protiviti India Member Private Limited as the company's Internal Auditor. Protiviti India, a globally recognized consulting firm, brings extensive experience in internal auditing across various sectors, including textiles and manufacturing.

This appointment is expected to enhance Sangam India's risk management and internal control processes, further strengthening its corporate governance framework.

Market Impact

These strategic decisions by Sangam (India) Limited demonstrate the company's commitment to sustainable growth, operational efficiency, and robust corporate governance. The acquisition of the RPSF unit, in particular, positions the company to meet the growing demand for recycled materials in the textile industry while potentially improving its competitive edge in both domestic and international markets.

As the textile industry continues to evolve with a greater focus on sustainability, Sangam India's latest moves could set the stage for improved market positioning and long-term value creation for its stakeholders.