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Textile group SEL on major expansion drive
Apr '11
Ludhiana based Textile Group, SEL is to establish a new spinning facility and expand its terry towel manufacturing capacity in Punjab, at a cost of Rs. 11.5 billion.

The firm intends to spend Rs. 2.5 billion towards capacity expansion of its existing terry towel business from current 45 tons per day to 100 tons per day, during the year, and Rs. 9 billion for setting up a new state of the art spinning unit with a capacity of 210,000 spindles, in Punjab.

Around 80 percent of the terry towels are exported to leading brands in the Middle East, US, Europe, Japan, etc.

The new spinning unit would be the largest spinning facility at a single location and would provide direct employment to more than 2,500 people. Work in respect of this plant is likely to be completed by third quarter of 2012.

In addition to this, the firm is also expanding its annual garment production capacity from present 20 million knitted garments to above 50 million knitted garments.

The textile group has even announced that it would incur a capital expenditure of Rs. 19.2 billion for setting up a yarn spinning unit with 400,000 spindles at Mehatwara in Madhya Pradesh's Sehore district.

Moreover, another expansion drive is also in progress at Haryana's Hansi and Rajasthan's Neemrana based plants. The Haryana based plant houses a capacity of 60,000 spindles.

Besides, the textile group has also purchased a firm with a capacity of 70,000 spindles in Gujarat. Once the facility is made operational after renovation and modernisation by July 2011, it would provide direct and indirect employment for more than 4,000 and 20,000 people, respectively.

Fibre2fashion News Desk - India

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