SEL to set up Rs 800 cr textile plant in MP

Textile company SEL Manufacturing today said it plans to set up a new facility near Bhopal, Madhya Pradesh, with total outlay of Rs 800 crore.

The proposed plant would have installed capacity of 1,95,840 spindles, company's Chairman and Managing Director Neeraj Saluja said in a statement.

With the setting up of the plant, total installed capacity of SEL would reach 4 lakh spindles. "It would help the company to be self dependent in terms of yarn for its ever growing demand of knitted garments and terry towel," he said.

The company plans to raise $50 million (Rs 226 crore) through global depository receipts (GDR). In the first phase of GDR, the company has already raised $10 million and is in the process of coming out with second phase of GDR, which would be completed in around next 10 days, Saluja said.

The Ludhiana-based company has achieved net sales of Rs 648.28 crore as on December 31, 2009, which is 47 per cent higher than the sales of Rs 439.73 crore achieved in the same period last year.