Ludhiana-based SEL Manufacturing Company today said it will invest Rs 1,920 crore to set up a yarn spinning facility at Madhya Pradesh.
To be spread over 400 acres, the company has proposed to set up 4 lakh spindles at the new unit, which will be the largest spinning facility at a location in the country. "In the first phase, 2 lakh spindles will be set up and rest in second phase," said a company statement issued here.
"The total cost of project for the proposed spinning plant is envisaged at Rs 1,920 crore. The financial tie-up with banks for the first phase is complete and for the second phase it is under progress," it said.
The project will provide direct employment to about 4,000 people and indirect employment to over 20,000, it added.
Besides, the company is also expanding its capacities either directly or through special purpose vehicle in value added segments like readymade garments and terry towels.
The net sales of the company stood at Rs 399.18 crore, up 124.96 per cent, for the quarter ended June 30 against Rs 177.44 crore in the corresponding period last year.
The Profit after Tax (PAT) stood at Rs 26.10 crore at the end of the first quarter compared to Rs 20.45 crore during the same period a year ago.
