SEL group enters MP with Rs 800 crores investment, plans to raise $50 million GDR
Chandigarh, March 10
Ludhiana based SEL Manufacturing Company Limited has planned Rs 800 crores textile plant near Bhopal, Madhya Pradesh.
Making an announcement in this context here today, Chairman and managing director, SEL Neeraj Saluja said that the spinning plant at Madhya Pradesh would have an installed capacity of 195840 numbers of spindles.
“To continue this aggressive growth, the company plans to raise $50 million 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.
Figuring in BSE at 532886 |NSE: SELMCL| ISIN: INE105I01012, SEL’s total installed capacity would cross 4 lakhs mark, making it one of largest textile companies. It would help the company to be self dependent in terms of yarn for its ever growing demand of knitted garments and terry towel.
Company has strong footing in product development, manufacturing and marketing coupled by most significant advantage in textiles that SEL makes its own yarns and fabrics to meet quality and shipment time of garments.
“We are in talks with investors at different levels for our new expansion plans that will bracket SEL as one of the top player in the textile industry across globe,” he remarked talking about the expansion plans.
The growth in sales has been achieved through slew of expansions and acquisitions elaborated. Profits of the company have been improving due to addition and expansions of value added products like terry towel and knitted garments.
Company has achieved net sales of Rs.648.28 crores as on December 31, 2009, which is 47 percent higher than the sales of Rs.439.73 crores achieved in the same period last year. The net profit of the Company has also grown by 61%, from Rs.38.74 crores as on 31.12.2008 to Rs.62.46 crores as on 31.12.2009.
Earlier last week it was reported to BSE that SEL Textiles Ltd, a subsidiary of the company proposes a Public Issue of Equity Shares through 100 percent book building method in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India. SEL Textiles Ltd. (the Company) proposes to finance the cost of Setting up a new facility for manufacturing of Terry Towels with an installed capacity of 3600 TPA out of the net proceeds of the issue.
R S Saluja Group was established in 1969 for manufacturing ready-made garments for Domestic Market. Over the year’s company grown to pioneer position in exports, supplying yarns, fabrics and garments to major markets in Russia and Middle East. At present the company has four state-of-the-art garmenting units, one knitting unit and complete state of the art processing house and 200000 spindles yarn spinning.