Sangam (India) Limited has informed the Exchange about Investor Presentation in connection with UnauditedFinancial Results for quarter and half year ended 30th September, 2022.
SANGAM (INDIA) LIMITED CIN : L17118RJ 1984PLC 003173
E - mail : secretarial@sangamgroup.com Website : www.sangamgroup.com I Ph : +91-1482-245400-06
Ref: SIL/SEC/2022-23 Date: 10th November, 2022
The Manager Department of Corporate Services The National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (E) Mumbai – 400051 Scrip Code: 5251
The Manager, Department of Corporate Services, Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers 25th Floor, Dalal Street, MUMBAI - 400 001 Scrip Code: 514234
Dear Sir/Madam,
Subject: Intimation to Stock Exchange – Investor Presentation in connection with Unaudited
Financial Results for quarter and half year ended 30th September, 2022
Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the copy of Investor Presentation in connection with Unaudited Financial Results for quarter and half year ended 30th September, 2022.
Kindly take the above on your record.
Thanking you, For Sangam (India) Limited
(A.K. Jain) Company Secretary FCS – 7842
Registered Office : Sangam House, Atun, Chittorgarh Road, Bhilwara - 311001 (Raj.) INDIA
SANGAM (INDIA) LIMITED
INVESTOR PRESENTATION
Nov 10, 2022
Disclaimer
“This presentation is for information purposes only and does not constitute an offer, solicitation, invitation to offer or advertisement with respect to the purchase or sale of any securities of Sangam (India) Limited (the "Company") and no part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company or its affiliates, its advisors or representatives, including its book running lead managers, or any such person's officers or employees accepts any liability (in negligence or otherwise) whatsoever arising directly or indirectly from the use of this presentation. Unless specifically mentioned, this presentation speaks as of its date. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This document also contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives, including its book running lead managers, nor any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors, nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecast developments. The Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. This presentation may not be reproduced, copied, distributed or disseminated in any other manner.”
2
Sangam (India) Limited
About Us
Sangam (India) limited was incorporated in 1984, promoted by Shri RP Soni, first generation entrepreneur & technocrat. SIL become a public limited company in 1992 and listed on both the major exchanges of India in NSE and BSE.
• SIL main business activities are Textile & garment manufacturing. Company has expanded its products portfolio
into full value chain in textile, manufacturing of yarn, fabric, fabric processing and Garment, etc.
• Company has build 4 state of the art manufacturing facilities situated in Bhilwara & Chittorgarh, Rajasthan,
India • Yarn (PV Fiber dyed, Grey yarn, & Cotton Yarn) • Fabric Production (Denim & PV fabric) • Fabric Processing • Knitted Fabric • Garments
: : : : :
96,150 MT 78 MMPA 72 MMPA 3,700 MTPA 5.6 MPPA
PV blended dyed/grey/cotton yarn
PV/denim fabric
Fabric processing
Garments
3
Sangam (India) Limited
Unique Business Propositions of Sangam India Limited Long standing presence over 35 years & established brands.
One of the largest producers of Poly Viscose Dyed Yarns in South East Asia, in oligopolistic market segment.
Diversified product mix from Yarn (PV & Cotton), Fabric (PV woven, Denim, Knitted), Garments, etc. A rare company in
India who is having such a large & diversified product mix.
Key player in the organized PV Fabric segment. SIL is very strong contender having limited competition in large &
institutional supplies.
Diversified customer base across segments & geography worldwide.
Manufacturing centricity and Economy of scale
One of the niche player in Seamless Garments manufacturing in India.
Brand C9 Air wear brings of progressive seamless wear to maximize flexibility, mobility and performance, while enhancing
comfort and confidence, as Intimate Wear, Active Wear, Yoga Wear, Shape Wear and Leisure Wear for women.
4
Sangam (India) Limited
Vision & Mission Statement
At Sangam, we strive to build enterprises driven excellence which by maximises customer satisfaction and create all value stakeholders.
for
:
n o i s i V
5
To maximise customer value expand and base with customer focus consumer business segment while pace with keeping changes external in environment.
on
:
n o i s s i
M
to
On the back of our resilient business model and operational efficiencies, we continued our drive stakeholders during the year. We remained steadfast on delivering the best quality and sustainable textile solutions, leading to a better tomorrow for everyone.
value
for
and
transparency
Commitment: We are committed to foster trusted client relationships and to enhance stakeholders’ value. We enable others to trust us by delivering on our accountabilities and stand by decisions when they are made. We expect to follow ethical business practices with complete open communication. Integrity: We carry our responsibilities in honest and trustworthy manner. We expect to uphold high standard of conduct and to have integrity in all our thoughts and actions. Professionalism: We expect to conduct ourselves in professional manner even in the most challenging circumstances. Quality: Our endeavour is to provide high quality products and adhere to world-class standards. Adaptability: We adaptable to changing dynamic environment.
steadfastly
remain
: s e u l a V r u O
R.P. Soni
Sangam (India) Limited
Board of Directors
Names of the Directors Shri R. P. Soni
Designation
Brief
Chairman
Dr. S. N. Modani
Managing Director & CEO
Shri Vinod Kumar Sodani
Executive Director
He is the Promoter and founder of Sangam group and has more than 50 years of rich experience in textile, civil and other sectors. He is a first generation entrepreneur, visionary leader & technocrat by profession. He is qualified science graduate and diploma in civil engineering. He admire social & philanthropic values and believes in giving back to the society, and has set up Hospital, School, University under various trusts.
He is responsible for managing the Yarn and Denim Business of SIL. He holds a Masters in Science (M. Sc.), with Honours in Chemistry, as well as an MBA and is associated with the textile industry since 1989. He is presently Chairman of Rajasthan Textile Mills Association & director in Confederation of textile industry “CITI”. He is awarded doctorate in strategic management practices for Sustainable Future by Sangam University. He is responsible for managing the weaving of Poly Viscose Fabric, the Processing Division and manufacturing of Seamless Garments. He is a B. Com. graduate and has completed his Chartered Accountancy.
Shri Anurag Soni
Shri Achintya Karati
Shri Tapan Kumar Mukhopadhyay Smt. Jyoti Sharma
Whole Time Director & CFO
Independent Director
Independent Director
He is a commerce graduate and completed MS in Finance. He is entrusted with the responsibility overall finance & treasury management and streamlining operations for sustainable business growth.
Having more than 51 years of work exp, worked in ICICI Ltd/ICICI Bank Ltd. holding responsible business development positions, head of Major Client Group - North and finally taking charge as Country Head of Government and Institutional Solutions Group. Having more than 48 years of work exp and worked as Chief General Manager and Country Head (Administration & Premises) in his previous assignment with from IDBI BANK and also held on various Senior Executive Positions.
Independent Director
She worked as Senior Vice President with Banking Codes and Standards Board of India since August 2015. Her forte is Corporate finance, resources mobilisation and monitoring of stressed assets.
Shri Yaduvendra Mathur
Independent Director
He was Officer of the Indian Administrative Service and retired in the year 2019 from the rank of Secretary to Govt. of India, Neeti Aayog, New Delhi. He was also associated with Exim Bank as CMD, with Rajasthan Financial Corporation as CMD, as Director General Revenue Intelligence, Principal Secretary Budget, Secretary Expenditure, Dy Secretary Finance as an Income Tax Officer, IRS and he was also associated with African Development Bank.
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Sangam (India) Limited
Production Capacity
Company's totally integrated infrastructure equipped to produce quality products ; from yarn to garments, includes Spinning, Weaving, Processing, Denim, Knitting & Garments Manufacturing supported by innovative styles, cutting- edge technology. Company has also invested heavily in developing and upgrading its infrastructure for better productivity and quality.
Division
Spinning
Weaving
Denim
Processing
Circular Knitting
Seamless Knitting
Thermal Power
Solar Power
Wind Power
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Assets
Production Capacity
271440 Spindles & 2,568 Rotors
96,150 MT PA
229 Weaving Machines
30 Million Meter Fabric PA
5 Processing lines & 295 Looms
48 Million Meter Fabric PA
7 Stenters-42 chambers
72 Million Meter PA
22 Machines
58 Machines
2 Plants
2 Plants
4 windmills
3,700 MT PA
5.6 Million Pieces PA
16.0 MW
13.0 MW
5.0 MW
Sangam (India) Limited
Major Milestones
limited as Converted to Public ‘Sangam (India) Limited, raised fund through first IPO of 3.2 Mn shares @ Rs15 each
expansion
11,520 Capacity spindles to spinning capacity and 3.8 MW Captive power plant
by
expansion
26,592 Capacity spindles and 10 MW Coal based thermal power plant
by
1984
1995
2000
2006
1993
1998
2003
Incorporated as a Private Limited Company by Mr R. P. Soni & started operations with 8 weaving machines.
Backward integration into spinning (Installed 17,280 spindles for PV dyed yarn)
Capacity 8,640 expansion spindles, 16 weaving machines and 1.9 MW Captive power plant
by
Amalgamation of SPBL Limited (A process house) with the Company
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Sangam (India) Limited
Major Milestones (contd.)
Expansion in weaving/ processing unit at village Atun
Installation of balancing machineries on its existing units
Expansion by 26,736 spindles for manufacturing of PV dyed yarn at Soniyana , 74 weaving machines
2009
2013
2015
2018
2011
2014
2016
Major Expansion by 1.13 Lakhs spindles, 130 weaving & 12 knitting machines and captive thermal power plant of 6 & 15 MW
Expansion of denim unit, process unit, texturizing yarn, open end yarn, knitting unit
Garment Unit 36 Machines, 10,080 spindles and 56 weaving machines
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Installed one Rope dyeing unit (24 Rope) and 78 looms at Denim unit
Sangam (India) Limited
Product Portfolios
SIL focused to deliver the best-in class products across the textile value chain. Company's expanded portfolio includes
PV blended dyed/grey yarn
Cotton spun yarn
Cotton open end yarn
Texturized yarn
Synthetic blended fabric
Denim fabric
Fabric processing
Cotton knitted fabric
Garments
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Sangam (India) Limited
Textile Value Chain
Nature/ Man Made
Ginning
Spinning
Weaving/ Knitting
Processing
Stitching
Raw Material
Fiber
Yarn
Fabric
Processed Fabric
Garment / Apparel
Polyester, Viscos, Cotton, etc.
Man Made PV & PC textiles
Wool
Silk
Jute
Other Synthetic & Technical Material
Woollen textiles
Silk textiles
Jute textiles
Technical textiles
Fiber & Yarn Segment
Fabric & Apparel Segment
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Sangam (India) Limited
Manufacturing Facilities
Atun, Bhilwara : Weaving, Processing & Garment Plant
Atun, Bhilwara: Seamless Garment Unit
Biliya Kalan, Bhilwara: Spinning Plant Unit-I, Denim Weaving & Processing Plant
Sareri, Bhilwara: Spinning Plant Unit-II
Soniyana, Chittorgarh Spinning Plant Unit-III
Company has five manufacturing facilities located at Bhilwara and Chittorgarh in Rajasthan.
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Sangam (India) Limited
Quarterly Result Snap Shots
INR Cr
REVENUE (INR Cr)
EBITDA (INR Cr)
FY22,Q2
FY23,Q2
FY22,Q2
FY23,Q2
12% YOY
7% YOY
635
709
74
79
CASH EPS (INR Cr)
EPS (INR)
FY22,Q2
FY23,Q2
FY22,Q2
FY23,Q2
-3% YOY
12% YOY
14.93
14.5
6.86
7.69
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Sangam (India) Limited
I
N O T C U D O R P
E U N E V E R
Business Segments Quarterly Trend
Yarn (MT)
PV Fabric (Lakh Meter)
Denim Fabric (Lakh Meter)
Garment (Lac Pcs)
18,565.9
18,293.5
16,489.6
19,507.4
73.8
71.6
62.0
80.0
97.2
111.5
106.0
13.3
11.0
12.0
11.0
74.0
Dec-21 Qtr.
March-22 Qtr.
June-22 Qtr.
Sep-22 Qtr.
Dec-21 Qtr.
March-22 Qtr.
June-22 Qtr.
Sep-22 Qtr.
Dec-21 Qtr. March-22
June-22 Qtr. Sep-22 Qtr.
Dec-21 Qtr. March-22
June-22 Qtr. Sep-22 Qtr.
Qtr.
Qtr.
Yarn (INR Cr)
PV Fabric (INR Cr)
Denim Fabric (INR Cr)
Garment (INR Cr)
404.8
357.1
338.9
345.9
118.0
101.5
81.7
175.0
195.2
210.0
164.8
21.1
24.0
145.0
20.0
16.0
Dec-21 Qtr.
March-22 Qtr.
June-22 Qtr.
Sep-22 Qtr.
Dec-21 Qtr.
March-22 Qtr.
June-22 Qtr.
Sep-22 Qtr.
Dec-21 Qtr. March-22
June-22 Qtr. Sep-22 Qtr.
Dec-21 Qtr. March-22
June-22 Qtr. Sep-22 Qtr.
Qtr.
Qtr.
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Sangam (India) Limited
Market wise sales chart
Inr Cr
600.0
500.0
400.0
300.0
200.0
100.0
-
15
Domestic Sales
Exports Sales
538.4
494.7
420.3
428.1
434.4
356.4
314.4
312.0
199.1
111.8
123.8
139.1
233.7
176.7
214.6
218.1
217.7
171.5
Sep-20 Qtr.
Dec-20 Qtr.
Mar-21 Qtr.
June-21 Qtr.
Sep-21 Qtr.
Dec-21 Qtr.
March-22 Qtr.
June-22 Qtr.
Sep-22 Qtr.
Sangam (India) Limited
Income Statement: Q2 FY 2023 (standalone)
INR Lakhs
16
Sangam (India) Limited
Particulars30.09.202230.06.202230.09.2021YoY Qtr30.09.202230.09.2021YoY PeriodIncomeRevenue from Operations70,932 71,328 63,492 12%1,42,260 1,04,528 36%ExpensesCOGS55,401 55,116 48,814 13%1,10,517 80,491 37%Operating Profit15,531 16,212 14,678 6%31,743 24,037 32%Operating Profit Margin %21.9%22.7%23.1%22.3%23.0%Other income309 465 352 774 531 EBITDA8,175 9,783 7,686 6%17,958 12,804 40%EBITDA Margin11.5%13.7%12.1%12.6%12.2%Finance costs1,644 1,429 1,203 3,073 2,357 30%Cash Profit6,531 8,354 6,483 1%14,885 10,447 42%Cash Profit Margin9.2%11.7%10.2%10.5%10.0%Depreciation and amortisation expense220518501809405537388%Profit Before Tax432665044674-7%10830670961%Tax expense:9741254169422382407Profit After Tax33525250298012%85924302100%Other Comprehensive Income/(Loss) 3020675195Comprehensive Income for the period30615270304783224397Paid-up Equity Share Capital 45054342434245054342Earning per Share7.6912.16.8612%19.79.999%Cash EPS14.5019.214.93-3%33.024.137%For Year EndedQuarter Ended Balance Sheet : Q2 FY 2023 (standalone)
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Sangam (India) Limited
Particulars30.09.202231.03.2022ASSETSNon-Current AssetsProperty, Plant and Equipment 64,975 59,475 Capital Work-in-Progress 7,515 7,098 Other Non-Current Assets 16,601 9,049 Total Non-Current Assets 89,091 75,622 Current Assets 1,02,775 1,06,604 Inventories 43,268 52,797 Trade Receivables 38,658 37,643 Cash & Bank Balance 5,419 2,126 Other Current Assets 15,430 14,038 Total Assets 1,91,866 1,82,226 EQUITY AND LIABILITIESTotal Equity 83,531 71,621 Non-Current Liabilities 28,528 22,060 Borrowings 24,899 18,055 Lease Liability 143 219 Deferred Tax Liabilities (Net) 3,486 3,786 Current Liabilities 79,807 88,545 Borrowings 54,199 57,984 Trade Payables 7,165 13,370 Other Current Liabilities 18,443 17,191 Total Equity and Liabilities 1,91,866 1,82,226 For the Year Cash Flow Statement : Q2 FY 2023 (standalone)
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Sangam (India) Limited
Particulars30.09.202230.09.2021Cash Flow from Operating ActivitiesNet Profit Before Tax10,509 6,709 Depreciation and Amortisation Expense4,055 3,738 Finance Costs3,073 2,357 Other Items -1,038 143 Operating Profit before working capital changes 16,599 12,947 Movements in Working Capital 1,746 -5,955 Cash Generated from Operations 18,345 6,992 Taxes Paid / (Refund) (Net) 2,388 1,024 Net Cash Inflow / (Out Flow) from Operating Activities 16,039 5,968 Cash Flow from Investing ActivitiesPurchase of Fixed Assets-15,898 -3,942 Sale of Fixed Assets1,425 129 Other Items -2,744 264 Net Cash Inflow / (Outflow) from Investing Activities-17,217 -3,549 Cash Flow from Financing ActivitiesProceeds from issue of Share/ Warrant -225 2,000 Net/Repayment of Long Term Borrowings 6,845 -3,585 Increase / (Decrease) in Short- Term Borrowings-3,785 4,206 Finance Costs -3,057 -2,426 Dividend Paid (Including Tax on Dividend) - -430 Net Cash Inflow / (Out Flow) from Financing Activities4,471 -2,235 Net Increase/(Decrease) in Cash & Cash equivalents3,293 184 For the Year Historical Financial Performance
INR Cr
19
Sangam (India) Limited
ParticularsSep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Sales310.9438.2495.5410.4634.9646.1746.3713.3709.3Cost of Materials consumed154.1220.1275.4251.7334.7366.2427.1447.4409.4(Increase)/ Decrease in Inventories21.235.5-16.1-46.823.9-9.0-3.9-48.9-17.9Employee benefits expense34.141.748.543.451.852.553.255.059.5Power & Fuel36.446.353.449.259.667.868.879.280.9Other expenditure41.252.860.462.991.191.593.487.498.7Total Expenses287.0396.4421.7360.5561.1569.0638.6620.1630.6Net Income (Exclusively Operating EBIDTA)23.841.973.850.073.877.1107.893.278.7Other IncomeNet Income (Operating EBIDTA)23.841.973.850.073.877.1107.893.278.7Non operating income/exp0.92.65.11.22.42.7-0.84.73.1EBIDTA24.744.478.951.176.279.8107.097.981.8Finance Costs9.711.813.911.511.413.011.214.316.4PBDT (Cash Profit)15.032.665.139.664.866.895.883.665.3Depreciation & Amortisation expense20.520.319.219.318.118.015.018.522.1Profit / Loss Before Tax -5.612.345.920.446.748.880.865.143.3Tax Expenses-1.54.811.77.116.95.114.212.59.7PAT-4.17.534.113.229.843.766.652.533.5Extraordinary item - Gain / (Loss)-12.30.0-3.2Net Profit/ (Loss) for the period-4.17.534.113.229.843.754.352.530.3Other Comprehensive Income (After Tax)0.10.62.30.30.71.6-1.50.20.3Total Comprehensive Income for the period-4.08.0936.413.530.545.352.752.730.6 SANGAM Way Forward
On Going Expansion Plan
1. Phase 2 Cotton Expansion Project outlay of 138 cr: it will add capacity of 10,500 MT PA and appx 300cr of revenue at full year of operation. Project expected COD at 1st April 2023.
2. Garment Project outlay of 157 cr, 106 machines under wholly owned subsidiary SVL : and it will around 200 cr of revenue at full year of operation project will be commenced in phase manner from next financial year.
3. Denim Expansion Project costs outlay INR180 cr – 81 Looms for Denim Fabric manufacturing for captive consumption for further processing, Sizing machines & agriculture waste input based two Boilers for cost optimization and green energy solution, project is expected to give pay back in 3-4 years as part of costs saving & improve realization.
4. PV Fabric Expansion Project: company has envisaged further expansion in weaving unit with project out lay of 108cr, putting 67 new advance technology looms in the existing weaving blocks. The plant capacity shall be increased by finished fabric~ 10 MM “million meters” of fabric per annum, this will increase the fabric production capacity by one third from existing 30 MM to 40 MM per annum. Project is expected to generate return over 20% and give pay back less than 4 years.
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Sangam (India) Limited
Shareholding Pattern As on 30.09.2022
Sep-22
30%
70%
Jun-22
39%
61%
Promoters
FIIs
DIIs
Public
Promoters
FIIs
DIIs
Public
Mar-22
39%
61%
Mar-21
39%
2%
59%
Promoters
FIIs
DIIs
Public
Promoters
FIIs
DIIs
Public
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Sangam (India) Limited
SANGAM : External Credit Rating
22
Sangam (India) Limited
Rating Issued on 23.03.2022Name of the Rating Agency :DateLong Term FacilitiesShort Term Facilities 03.02.21Ø Affirmed at ‘IND A’ Outlook StableØ Affirmed at ‘IND A1’ 11.12.19Ø Affirmed at ‘IND A’ Outlook NegativeØ Affirmed at ‘IND A1’ 29.11.18Ø Downgraded to ‘IND A’Ø Affirmed at ‘IND A1’ 13.10.17Ø Affirmed at ‘IND A+’Ø Downgraded to ‘IND A1’ 26.10.16Ø Affirmed at ‘IND A+’Ø Affirmed at ‘IND A1+’01.10.15Ø Upgraded to ‘IND A+’Ø Upgraded to ‘IND A1+’13.09.14Ø Upgraded to ‘IND A-’Ø Upgraded to ‘IND A1’04.12.13Ø Upgraded to ‘CARE BBB+’Ø Upgraded to ‘CARE A2’India Ratings and Research Pvt. Limited (A Fitch Group Company)Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.Earlier Company was Rated Thank you
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Sangam (India) Limited