Ludhiana-based textile group SEL today said it plans to invest Rs 900 crore for setting up a new spinning facility in Punjab even as the ongoing expansion in other states would start adding to its topline from next year.
"We have planned to set up a state-of-the-art yarn spinning unit at an estimated investment of Rs 900 crore in Punjab…currently we are looking for a suitable location for the plant and we want to have it near cotton growing areas of the state," SEL Executive Director and CEO V K Goyal said.
The capacity of this new plant will be 2,10,000 spindles and it will be the largest spinning plant at a single location in Punjab, which will generate a direct employment for over 2,500 and indirect employment for about 15,000 people, Goyal said.
"It is expected to be commissioned next year," he said.
The company is already undertaking a massive expansion plan in Madhya Pradesh, Rajasthan and Haryana with capital expenditure of Rs 2,100 crore.
"The new plant at MP will have an installed capacity of 4 lakh spindles while 60,000 spindles will come up at Neemrana (Rajasthan) and Hansi in Haryana," he said, adding that they would be commissioned before June 2011.
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At present, the group has a yarn spinning capacity of over 2 lakh spindles producing about 150 tonnes of cotton, blended and speciality yarns per day.
It also plans to expand the capacity of its towel division from 45 tonne per day to 100 tonne per day with an estimated investment of Rs 200 crore in Punjab in the next one year.
SEL supplies towel to USA, Europe, Japan and many other markets across the globe.
The company is aiming a turnover of Rs 1,600 crore by the end of the current fiscal against Rs 983 crore in 2009-10.