Textile Group SEL today said it would invest Rs 1,150 crore on setting up new spinning unit and expanding its terry towel business in Punjab.
The company has proposed to invest a sum of Rs 900 crore on new spinning facility with a capacity of 2,10,000 spindles and Rs 250 crore on expanding terry towel making capacity from 45 tonne per day to 100 tonne per day.
"The new state of the art yarn spinning unit coming up in Punjab will have capacity of 2,10,000 spindles with investment of Rs 900 crore," SEL Executive Director and CEO V K Goyal told PTI today.
"The plant shall be the largest spinning plant at a single location in the state, which will generate a direct employment of over 2,500 people," Goyal said. Plant will be ready by third quarter of next year.
"Investment in terry towel business will be to the tune of Rs 250 crore within one year," he said adding, 80 per cent of terry towels are exported to big brands in US, Europe, Middle East, Japan, etc.
Similarly, the company is expanding its capacities in garment manufacturing from 20 million at present to over 50 million knitted garments per annum, he said.
Ludhiana based SEL has also announced the commissioning of yarn spinning facility of 4 lakh spindles capacity set up at Mehatwara in Sehore district in Madhya Pradesh with capital outlay of Rs 1,920 crore.
This project would generate direct employment for over 4,000 people and indirect employment for over 20,000 people, he said.
Another expansion drive is also underway at Neemrana (Rajasthan) and Hansi in Haryana with capacity of 60,000 spindles. SEL has also acquired a company in Gujarat, having 70,000 spindles capacity.
"This will be made operational by July, 2011 after refurbishing and modernisation," he said.
SEL is aiming at a turnover of Rs 1,700 crore in 2010-11, compared with sales of Rs 983 crore in last fiscal.
