A flagship in the global textile value chain, Sangam India has finalized a strategic power purchase agreement (PPA) with CleanMax Enviro Energy Solutions to supply 50 MW of hybrid renewable energy to its Rajasthan manufacturing clusters. Unlike traditional intermittent solar projects, this installation combines 30 MWp of solar and 20 MW of wind capacity, integrated with a 2 MWh Battery Energy Storage System (BESS). This technical configuration ensures a stable, round-the-clock power supply for five key textile facilities effectively mitigating the energy volatility that often disrupts high-precision spinning and weaving processes.
Financial resilience amidst energy cost inflation
The transition to a ‘group captive’ energy model serves as a vital fiscal hedge against rising grid tariffs and 4.7 per cent fluctuations in industrial power costs. By leveraging the Rajasthan Green Energy Open Access Regulations 2025, Sangam is projected to achieve annual energy savings exceeding Rs 10 crore (approximately $1.2 million). Operations and sustainability must move in tandem for a manufacturing-led business, stated SR Dakhera, CFO, Sangam India. This move is critical as the company targets a revenue milestone of Rs 4,000 crore by 2026 -end, driven largely by a shift toward higher-margin seamless wear and technical denim.
Scaling sustainable infrastructure for export compliance
The integration of renewable power aligns with the broader sector's need to meet tightening global ESG standards, including the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM). By augmenting its existing 22 MW renewable portfolio with this hybrid project, Sangam is positioning itself as a low-carbon preferred supplier for North American and European retailers. This infrastructure upgrade complements the firm's recent expansion into recycled polyester fiber - now producing 45 metric tons per day from PET flakes - creating a vertically integrated, circular manufacturing ecosystem that insulates the balance sheet from raw material and energy price shocks.
Based in Bhilwara, Sangam India is a leading vertically integrated textile manufacturer specializing in PV yarn, denim, and seamless activewear. Operating six world-class facilities, the group exports to over 50 countries. The firm is currently executing a CAPEX-heavy expansion to reach Rs 4,000 crore in revenue by FY2026, supported by a recent 39.3 per cent growth in EBITDA and a strategic pivot toward sustainable, high-value branded apparel.
