SEO Version
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The Textile Magazine
NOVEMBER 2011
SEL Manufacturing
expansion
plans on track
corporate news
The Ludhiana-based integrated textile
conglomerate, SEL Manufacturing Com-
pany Ltd., has achieved a turnover of
Rs. 1,071.67 crores for the half-year
ended September 30, 2011, against Rs.
812.79 crores in the corresponding pe-
riod last year, an increase of 31.85 per
cent. Earnings before depreciation, inter-
est and tax increased from Rs. 137.18
crores in the first half of 2010-11 to
Rs. 182.45 crores during the half-year
ended September 30, 2011, recording
an increase of 33 per cent. Profit after
tax during the half-year ended Septem-
ber 30 stood at Rs. 39.06 crores (Rs.
52.79 crores).
While increase in EBIDTA is attributable to op-
erational effciencies, the company is going through
a lot of expansion and the full contribution thereof is
yet to be captured in its fnancial results.
The Indian economy has been witnessing increas-
ing interest rates. Yarn prices had an uncertain and
declining trend. Further, the uncertainty in the Gov-
ernment policies with regard to cotton and cotton
yarn exports have also added to the woes of the tex-
tile sector.
The early part of the current fscal was marked by
a high volatility in cotton prices. The trend of spiralling
raw material prices was reversed, followed by a steep
fall in the prices of cotton by the end of the last season.
Still cotton prices were very high as compared to the
previous years. Indian textile companies, which were
carrying stocks of cotton of high cost had to face a very
tough situation as yarn prices had fallen steeply and de-
mand was sluggish. This unprecedented phenomenon in
cotton prices, high inventory carrying costs followed by
devaluation of stocks has been quite challenging for the
textile sector and has been greatly responsible for ero-
sion in proftability.
SEL Manufacturing, however, continues moving for-
ward on the expansion front. The company is imple-
menting another integrated textile project for setting
up a spinning unit with a capacity of about two lakh
Mr. Neeraj Saluja,
Managing Director
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