SEL Manufacturing Company Ltd has laid out ambitious plans to boost its production of cotton yarn, fabrics and garments, starting with an INR8bn (US$173m) textile plant near Bhopal in Madhya Pradesh.

It is also trying to raise $50m to continue its aggressive growth, with $10m already secured and the rest due to be completed in the next 10 days.

"We are in talks with investors at different levels for our new expansion plans that will bracket SEL as one of the top players in the textile industry across globe," according to chairman and managing director Neeraj Saluja.

The spinning plant at Madhya Pradesh would have an installed capacity of 195,840 spindles, taking SEL's total capacity to more than 400,000 spindles and making it one of largest textile companies.

The expansion is seen as key to helping the company be self-sufficient in terms of yarn for its knitted garments and terry towel operations.

SEL already makes its own yarns and fabrics to meet the quality and lead-times of its garment production, and in the year to 31 December posted a 47% jump in sales to INR6.5bn. Profit soared 61% to INR624.6m.

The company is a unit of Saluja Group, which supplies yarns, fabrics and garments. It has four state-of-the-art garment units, one knitting unit, a processing house and 200,000 yarn spindles.