Punjab-based vertically integrated textile house SEL Manufacturing Company Ltd has decided to invest Rs 1,500 crore in expansion.
The company has put up a greenfield mega integrated textile project in 30 acres at Rahon near Nawanshahar (about 90 km from Chandigarh), which has to be commissioned on Thursday.
Chief Minister Parkash Singh Badal will lay the foundation stone of the first textile and apparels park of Punjab, promoted by the same group adjoining the mega integrated textile project in another 30 acres.
The textile industry of Punjab is likely to get a big push with the commissioning of the first textile and apparels park at Rahon near Nawashahar promoted by SEL Manufacturing Company Ltd. The cluster of textile and apparel outfits will house 20 players and mobilise an investment of about Rs 500 crore.
The central ministry of textile has given Rs 40 crore in the form of capital subsidy to the textile and apparel park project. A special purpose vehicle has been floated by SEL Manufacturing with independent directors from IL&FS for the park, which is likely to be commissioned in the next financial year. The project is estimated to near an investment of Rs 134 crore.
Talking to Business Standard the Managing Director, Neeraj Saluja said that greenfield mega integrated textile project of SEL Manufacturing Co Ltd is being undertaken at an investment of Rs 1350 crore (approx) and it would revolutionise the textile manufacturing industry.
The project will have a 20 Mw multi-fuel captive power plant that would be used at the two projects.
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SEL had a turnover of Rs 400 crore in March 2008. The company recorded a turnover of Rs 200 crore in the first quarter in the current year and expects to register a turnover of Rs 800 crore in this financial year. About 50% of the revenue comes from export business mainly done at East Europe, West Asia and European countries.
Part of 40 year old, R S Saluja group, the Company is manufacturing & exporting knitted garments, fabrics & yarn.The Company is implementing a project for setting up one of the largest technical textiles facilities in India. The company would be manufacturing medical clothing, wipes, diapers and geotextiles which would be supporting the growing infrastructure requirements of India.
Further, the company is enhancing its product mix by inculcating value added products like designer Terry Towels integrated with open end spinning facilities.
Further, the company is setting up an integrated textile park, the first apparel park of Punjab, with a capacity to manufacture 54.00 million pieces per annum of knitted garments.
The park, which would have 10.00 lakh sqft covered area would be one stop solution for garment manufacture having facilities from knitting, printing, embroidery, washing, packing, labelling etc. The facility would generate employment for about 25,000 people and would be one of the largest garment manufacturing facility.
The company has already received approval from Ministry of Textiles for setting up the park. Apart from expansions, the company is also providing free accommodation, free medical facilities & free education to its workers. It has tie up with a multi-speciality hospital for the benefit of its workers. The workers are given free pick and drop facilities.
The company has well equipped in house training centres which impart training to unskilled workers in order to turn them into skilled labour force.
According to Neeraj Saluja, MD, “We aim to be among the top three integrated textile makers in India by two years.”
The company has laid down a path to increase the manufacturing capacities, diversifying into avenues in textiles, and continues to invest in design and product development. It also aims at developing and maintaining strong relationship with its clients and strategic partners.
According to Saluja, “the investments into technical textiles, captive power plant, Terry Towels and garment business will go long way for value creation for shareholders.”