Leading multinational cotton yarn manufacturer SVP Global Ventures has started commercial operations for its mega textile plant in Oman. The Group has invested US $ 150 million (around Rs. 1,100 crore) in setting up 1.5 lakh spindles and 3,500 rotors facility at Sohar Free Trade Zone in Oman.
The plant is expected to reach peak utilisation by next month and contribute hugely in the overall revenue of the company.
SVP Global is accredited as an approved supplier for leading brands including IKEA and Zara.
Established in 1898, by Shri Vallabh Pittie, SVP Group is primarily engaged in manufacturing of polyester, polyester & cotton blend, and 100 per cent cotton yarn across 3 state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman).
This expansion offers strategic operational and logistics benefits over a long period of time. In addition to 25 years corporate tax holiday it offers 100 per cent foreign ownership, low cost of capital and less power cost. Power cost is 40 per cent less compared to the home market in India.
Oman also has Free Trade Agreements (FTA) with the US, Turkey and many other countries. Additionally, it offers zero per cent 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.
“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,” said Chirag Pittie, Director of the company.
Major Gen OP Gulia, SM, VSM (Retd.), CEO of the Group said, “Our Group is now ready to foray into the complete value chain of textile. The order book of the company currently stands at Rs. 5,000 crore equivalent to next 2-3 years of revenue.”
It is important to mention here that company has reported robust financials for the Q1 FY22; its net sale was Rs. 412 crore, growth of over 300 per cent Y-o-Y, while net profit remains at Rs. 39 crore (PAT margin of 9.5 per cent).
For FY21, the company reported total income of Rs. 1,422 crore and PAT at Rs. 25 crore.
The company claims that it is amongst top 2 per cent of 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.