Published On:March 10 2008
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SEL Manufacturing plans Rs 8,100-mn expansion
Mumbai: SEL Manufacturing, the Rs 1,000-crore integrated multi-product textile company, has chalked out a mega expansion plan at an investment of Rs 810 crore.
This includes raising the spinning capacity by 75,600 spindles or 20,195 tonnes per annum from the existing 74,256 spindles or 17,240 tonnes per annum.
The investment plan is likely to be financed by a combination of internal accruals, equity dilution and rupee term loan. A greenfield plant of terry towel with a capacity of 12,600 tonnes per annum is proposed to be installed besides an open-end spinning and captive power plants with a capacity of 20Mw.
The power plant is proposed to be set up based on bio-mass for which it is planning to use rice husk and pet coke as fuel.
The captive power plant would not only provide uninterrupted power supply but also bring down the power cost and improve profitability, a company official said. The commercial production in the terry towel plant is likely begin in July this year while all other plants are scheduled to start production by 2009.
The company is planning another expansion worth Rs 650 crore, which would be financed by way of rupee term loan of Rs 500 crore and equity/internal accruals of Rs 150 crore.
The project would come up at the same site where earlier expansion is going on and the company has already acquired about 30 acres of land required for the expansion.
Further, it has already approved issue of convertible equity warrants worth Rs 140 crore to FIIs/domestic funds and promoters as equity component to fund the issue.