Textile maker SEL Manufacturing will set up a spinning and garment facility in Punjab with an estimated investment of Rs 1,600 crore to cater to domestic market.

Besides, the company has been selected as vendor by Sweden-based retailer IKEA for supply of terry towel, company’s Executive Director and CEO Mr V K Goyal told PTI today.

“We will set up a composite plant having spinning, denim and garmenting facilities in Muktsar district of Punjab and it will entail an investment of Rs 1,500-1,600 crore and it is expected to be commissioned in 18 months,” Mr Goyal said.

Describing it as one of the largest investments in the state by the company, Mr Goyal said the proposed plant would have 2 lakh spindles capacity, 40 million meters of denim fabric and 8 million pieces in denim garments per annum.

Ludhiana-based company would use mixture of debt and internal accruals to fund the expansion programme, he said.

“The main reason of setting up plant in Muktsar is the availability of cotton in sufficient quantity in this area. And this plant will mainly cater to markets of northern region,” he said.

SEL Manufacturing, a listed company, has already one plant in Nawanshahar and one plant in Ludhiana. Besides, the company is also having a facility in Baddi.

To cater to export markets, SEL also intends to raise capacity of its terry towel facility in Punjab by infusing a sum of Rs 300-350 crore.

The company plans to raise capacity of its terry towel business from 45 tonne per day to 100 tonne per day.

Mr Goyal further said that SEL has been selected as one of the vendors by ICEA for the supply of terry towel which will be sold in various retail stores of the company.

“We are hoping to start supplying our terry towels to IKEA by February or March next year,” he said.

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