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 manufacturing capacity from 45 tonne per day to 100 tonne per day.

“The new yarn spinning unit coming up in Punjab will have capacity of 2,10,000 spindles with investment of Rs 900 crore,” the SEL Executive Director and CEO, Mr 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,” Mr Goyal said. The 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, West Asia, Japan, etc.

Capacity expansion

Similarly, the company is expanding its capacities in garment manufacturing from 20 million at present to over 50 million knitted garments a year, 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.

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