SVP Global starts operations at textile plant in Oman
The group has invested $ 150 mn in the Oman textile plant, which has 1.5 lakh spindles and 3,500 rotors in the facility.
Mumbai
India’s largest compact cotton yarn
manufacturer SVP Group, through its subsidiary SV Pittie Sohar Textiles (FZC), has commenced commercial
operations at its mega textile plant in Oman. The group has invested $ 150 million (around Rs 11 billion) to set
up 1.5 lakh spindles and 3,500 rotors facility at Sohar Free Trade Zone (SFTZ)
in Oman. The plant is expected to reach peak utilisation by September 2021 and
expected to contribute hugely in overall revenue of the company.
Established in 1898, by Shri Vallabh Pittie, SVP Group is primarily
engaged in manufacturing of polyester, polyester & cotton blend, and 100%
cotton yarn across 3 state-of-the-art manufacturing facilities in Jhalawar
(Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). The company has a vision to
become a world-leading, fully integrated textile company in manufacturing yarn,
fabric and garments.
Commenting on the development, Chirag
Pittie, Director, SVP Group, said, “The expansion of Oman plant
consisting of 150,000 spindles and 3,500 rotors has been successfully completed
and is expected to fully contribute to the financial performance starting
September 2021. The strong demand for high margin combed compact cotton yarn
coupled with sales off-take agreements will enable us to fully utilise the new
capacities and enhance value for our stakeholders. We have a vision to be a
leading integrated textile manufacturer of the world.”
SVP Group expansion at Sohar Free Trade
Zone in Oman offers many strategic operational and logistics benefits over a
long period of time. In addition to 25 years corporate tax holiday, it offers
100% foreign ownership, low cost of capital and less power cost. Power cost is
40% less compared to the home market in India. Oman also has Free Trade
Agreements with the USA, Turkey and many other countries. Additionally, it
offers zero percent import or re-export duties.
With the completion of expansion at
Sohar, the total operational capacity of the company has increased to 4 lakh
spindles and 5,900 rotors.
Maj Gen O P
Gulia, SM, VSM (retd), CEO of the SVP Group, said, “Our
manufacturing facilities are operating at near peak capacity and the Oman
facility is planned to reach peak utilisation by September 2021. Our strategic
growth initiatives, enhanced capacity and operational efficiencies, product and
geographical expansion with focus on high margin products are likely to drive
profitability and contribute to the growth of the company. The Group is now
ready to foray into the complete value chain of textile. The order book of the
company currently stands at Rs 50 billion equivalent to next 2-3 years of
revenue.”
SVP Group has reported robust financials
for the Q1FY22. For the Q1 ended June 2021, SVP Global Net sales of Rs 4.12 billion,
growth of over 300% Y-o-Y. EBITDA for Q1FY22 stands at Rs 0.91 billion (EBITDA
Margin of 22.2%) and net profit at Rs 0.39 billion (PAT Margin of 9.5%). For FY21, company reported total income of Rs
14.22 billion, EBITDA at Rs 2.34 billion and PAT at Rs 0.25 billion.
SVP Global claims to be among top 2%
Indian manufacturers with technology less than 5 years old and output of
153-154 grams per spindle per shift, which is highest in the industry. The
company’s manufacturing facilities are equipped with latest technology
automated machinery equipped with AI and IOT capabilities from blow room to
windling. SVP Global is accredited as an approved supplier for leading brands
including IKEA and Zara.
