SVP Global Ventures Limited achieves another milestone, announced the successful completion of its subsidiary in Oman and full capacity operations of 150,000 Spindles and 3500 Rotors. The leading textile group now has a total capacity of 400,000 Spindles and 5900 Rotors.
SVP Global Ventures Ltd, subsidiary SV Pittie Sohar Textiles, India's largest compact cotton yarn maker, has announced that its mammoth textile plant in Oman is now open for business. In Oman's Sohar Free Trade Zone, the Group has invested USD 150 million (about ₹1,100 crores) in the installation of 1.5 lakh spindles and 3,500 rotors. The factory is planned to reach full capacity by September 21 and contribute significantly to the company's overall revenue.
SVP Group, founded in 1898 by Shri Vallabh Pittie, principally manufactures polyester, polyester & cotton blend, and 100 per cent cotton yarn across three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore), and Sohar (Oman). The company’s goal is to create a world-class, fully integrated textile company that produces yarn, fabric, and apparel.
Chirag Pittie, Director, SVP Group, commented on the development, saying, “The expansion of the Oman factory, consisting of 150,000 spindles and 3,500 rotors, was successfully completed and is projected to completely contribute to the financial performance beginning September 2021. Strong demand for high-margin combed compact cotton yarn, combined with sales off-take agreements, will allow us to fully use the new capacity and increase value for our stakeholders. We want to be the world’s premier integrated textile manufacturer.”
SVP Group’s growth in Oman’s Sohar Free Trade Zone provides significant long-term strategic operational and logistics benefits. It also promises a 25-year business tax break, 100 per cent foreign ownership, cheap capital costs, and lower power costs. In comparison to India’s domestic market, power costs are 40% less. Oman has Free Trade Agreements with the United States, Turkey, and a slew of other nations. In addition, there are no import or re-export tariffs. The company’s overall operational capacity has expanded to 4 lakh spindles and 5,900 rotors with the completion of the expansion at Sohar.
“Our manufacturing facilities are nearing peak capacity, and the Oman facility is scheduled to reach peak utilisation by September 21,” said Maj Gen O P Gulia, SM, VSM (Retd), CEO of the Group. "Our strategic growth efforts, which include increased capacity and operational efficiencies, product and global development, and a focus on high-margin items, are expected to boost profitability and contribute to the company’s growth. The company is now prepared to enter the textile industry’s whole value chain. The company’s order book now stands at Rs. 5,000 crore, which is enough to cover income for the next 2-3 years”, added Maj Gen Gulia.
The company’s financials for the first quarter of FY22 were strong. SVP Global net sales of ₹412 crores in the first quarter of 2021, up over 300 percent year on year. For Q1FY22, EBITDA was ₹91 crores (EBITDA margin of 22.2 percent) and net profit was ₹39 crores (EBITDA margin of 22.2 percent) (PAT margin of 9.5 percent ). Total income for FY21 was ₹1422 crores, EBITDA was ₹234 crores, and PAT was ₹25 crores.
SVP Global is one of the top 2% of Indian manufacturers, with technology that is less than 5 years old and the industry’s maximum output of 153-154 grammes per spindle every shift. From Blow Room to Windling, the company’s manufacturing facilities are outfitted with cutting-edge automated gear with AI and IoT capabilities. SVP Global is an approved supplier for a number of well-known brands, including IKEA and Zara.
