SVP Global Ventures To Foray In To Technical Textiles; Plans Investment Of Rs. 100 Crore

MUMBAI — September 29, 2021 — With a vision to be a fully integrated and globally competitive textile manufacturer, SVP Global Ventures Ltd, India’s largest compact cotton yarn manufacturer is foraying into technical textiles. Company is investing around Rs. 100 crore in setting up a 4,375 MT per annum green-field facility for technical textiles at Jhalawar, Rajasthan. Company plans to manufacture protective uniforms and functional garments, medical textile,  mobiltech, hometech, anti-odour and antibacterial knitted fabric for sports, medical and cosmetic uses in apparel and expand gradually in other products. The company plans to commence commercial production in 12 to 15 months.

Technical Textiles is a high-tech and innovation driven industry which is steadily gaining ground in India. Technical textiles are functional fabrics that have applications across various industries including automobiles, civil engineering, construction, agriculture, healthcare, industrial safety and waste management among others.

Commenting on the development, Mr. Chirag Pittie Director of SVP Global, said “Technical textiles industry is expected to be the next sunshine industry and it is expected to get much needed impetus from production linked incentives announced by the Government recently. Looking at the bright prospects for the industry, the Group decided to enter this field. The new facility is adjacent to our existing facility in Jhalawar (Rajasthan). The expansion will complement our core business and the plant is expected to start commercial operations in 12 to 15 months”.

On September 8, Central Government announced an incentive scheme for attracting private investments into the labour-intensive textiles sector including 10 technical textile products. Under the production-linked incentive scheme – the government will offer incentives of around Rs 7,000 crore to man-made fibers and around Rs 4,000 crore to technical textiles. An incentive of 3 per cent to 11 per cent of the annual incremental revenues’ for five years will be provided to existing as well as proposed investments in the sector. The industry is expected to see a quantum jump and could reach the size of USD 5 billion in the next 3-5 years.

Maj Gen OP Gulia, SM, VSM (retd) CEO of  SVP Global, said, “Capex for the proposed green-field facility for technical textile is expected to be around Rs. 100 crore and will be funded from Internal accruals. Together with Government support and bright prospects for the industry, we expect the forward integration will make significant contributions to the group’s topline and margins. We expect revenues of approximately Rs. 175 crores per year from the technical textiles.”

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). Company has a vision to become a world-leading, fully integrated textile company in manufacturing yarn, fabric and garments.

The Group has recently commenced commercial operations at its mega textile plant in Oman. It has invested USD 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 expansion offers many strategic operational and logistics benefits over a long period of time. 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 Company has reported robust financials for the Q1FY22 with net sales of Rs. 412 crore, growth of over 300% Y-o-Y. EBITDA for Q1FY22 stands at Rs. 91 crore (EBITDA Margin of 22.2%) and Net Profit at Rs. 39 crore (PAT Margin of 9.5%).  For FY21, company reported total income of Rs. 1422 crore, EBITDA at Rs. 234 crore and PAT at Rs. 25 crore. The order book of the company currently stands at Rs. 5,000 crore which is equivalent to next 2-3 years of revenue.

SVP Global is 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. Company’s manufacturing facilities are equipped with latest technology automated machinery equipped with Artificial Intelligence and IOT capabilities from Blow Room to Windling. SVP Global is accredited as an approved supplier for leading brands including IKEA and Zara.

Posted September 29, 2021

Source: SVP Global Ventures Ltd