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SEL Manufacturing to set up spinning & garment facility
Nov '11
To cater to domestic demand, Ludhiana-based textile producer SEL Manufacturing plans to establish a spinning and garment facility in Punjab at an estimated cost of Rs. 16 billion.

The company, which has been selected as a supplier of terry towels by Swedish retailer IKEA, proposes to establish a composite plant encompassing denim, spinning and garment manufacturing facilities.

The new facility to be set up in Punjab's Muktsar district is likely to commence operations within next one and half years. Adequate availability of cotton in the region is the main reason that prompted the company to choose Muktsar for setting up the plant.

The new facility would mainly cater to northern region markets. It would come up as one of the principal investments of the firm in Punjab, and would house a capacity of 200,000 spindles to churn out 40 million meters of denim fabric and eight million pieces of denim garments each year.

The firm, which is a listed entity, presently operates one facility each in Ludhiana, Nawanshahar and Baddi. The expansion would be funded from a blend of debt capital and internal accruals.

In order to serve the needs of export markets, SEL also proposes to enhance the capacity of its terry towel facility in Punjab from 45 tons per day to 100 tons per day and plans to invest Rs. 3 to 3.5 billion for the purpose.

Fibre2fashion News Desk - India

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