SEL MANUFACTURING CO LTD Share Price

SEL Manufacturing Company Limited is a leading player in the textile industry. It is involved in the production, processing and trading of various textile products including yarn, fabric, readymade garments and towels. Its product portfolio includes a range of terry towels such as beach towels, bath towels, kitchen towels and Christmas towels. It is a part of the RS Saluja Group of Companies.

SEL Manufacturing Company was founded in 1969 as a small garment manufacturing unit. It expanded its operations into spinning in 2005 and subsequently entered the terry towels sector in 2008. The company soon increased its capacities to 4,50,000 operational spindles in yarns, 100 tonnes per day in terry towel manufacturing and 50 million pieces per annum in ready-made garments. The group achieved a milestone by establishing India's largest spinning unit with 4,00,000 spindles at a single location in Mehatwara in Sehore, Madhya Pradesh.

The company was originally incorporated under the name Saluja Exim Limited as a public limited company in 2000. The company underwent a name change to SEL Manufacturing Company Limited in 2003. In the same year, the name was changed to Saluja Exim Limited. It underwent another name change to become SEL Manufacturing Company.

The market capitalisation of SEL Manufacturing Company Limited stood at over ₹300 crore as of January 20, 2024. SEL Manufacturing share price has gained over 4,300% in the last three years.

SEL Manufacturing Company Limited business operations

SEL Manufacturing Company Limited makes and exports various types of knitted garments with its primary products including T-shirts, polo shirts, sweatshirts, boxer shorts, thermals, and girls' tops. A portion of the yarn produced by their spinning units is used internally for knitting operations, while the remainder is sold in both domestic and overseas markets. Similarly, the knitted fabric is utilised for garment manufacturing and is also sold in the local market.

SEL is a major producer of essential garments in India with a huge customer base in markets such as the United States, Russia and the Middle East. The garments division of SEL has an annual manufacturing capacity of approximately 18 million pieces. Plans are underway to increase the garment manufacturing capacity to 25 million pieces per year.

The company currently has manufacturing plants spread across various locations in Punjab, Himachal Pradesh, Rajasthan, Haryana and Madhya Pradesh. The company's Mehatwara plant is India's largest spinning unit at a single location. The group has production capacities of 43,000 tonnes per year in knitting and processing, 4,500 tonnes per year in yarn processing and 50 million pieces per year in ready-made garments.

SEL's terry towel division ranks as the third largest producer in the product category in India. Currently, SEL's towel weaving capacity is 50 tonnes per day. Some notable clients for SEL's terry towels include Target, Walmart, Sainsbury, London Luxury, Ralph Lauren, Dillards, Kohl’s and Lidl.

Financial Highlights

The company’s consolidated revenue from operations in FY23 stood at ₹554.36 crore, up 31.9% compared to ₹420.13 crore in FY22. The company’s consolidated net loss increased to ₹185.91 crore in FY23 compared to a net loss of ₹131.36 crore in FY22. The company's earnings per share (EPS) stood at ₹(-56.11) in FY23 compared to ₹(-39.65) in FY22.