SEL becomes partner in Kudu Industries
LUDHIANA-BASED SEL Manufacturing Company Limited has increased its stake to 99% in Kudu Industries to become a partner in the latter. The firm has a dyeing capacity of 4,500 tonnes/pa in fabric and 3,000 tonnes/pa in yarn. The firm also has flat bed printing, rotary printing and mercerising capacities of 2,400 tonnes/pa. The acquisition of the stake will help the com-pany in value addition through manufacturing of dyed yarn and printing of fabric and ready-made garments. In August 2007, SEL Manufacturing had floated an initial public offering for Rs 50 crore. The company had floated 54 lakh shares in the market with a price band of Rs 90 per share. Exim Bank has taken a 5 % stake in SEL. This translates to Rs 5 crore (approximately). “Kudu Industries is one of the largest process house of Lud-hiana. The deal is for Rs 20 crore. Being mainly into exports, our association with Exim Bank had given us an international credibility to our businesses. This has opened new avenues for the company and this is the second such development in the Indian textile industry,” said SEL Manufacturing Co MD Neeraj Saluja. The company proposes to expand its manufacturing capaci-ties in garmenting, knitting and spinning at a cost of Rs 184.57 crore. After the expansion, the company will have consolidated garmenting capacities of 6 million pieces per annum, fully backed by facilities for spinning, fabric knitting and process-ing. The financial appraisal of the expansion project has been done by SBI Project Uptech and the debt component of the project cost of Rs 103.79 crore is tied up under TUFS