MUMBAI — January 17, 2022 — India-based compact cotton yarn manufacturer and a fast-growing multinational textile company, SVP Global Ventures Ltd. will now be known as SVP Global Textiles Ltd. The SVP Global Ventures Ltd. is mainly into manufacturing of cotton yarn and hence a need was felt to include textile in the name. The company plans to be a fully integrated textile company from fiber to fashion with forward integration into fabric and garments. It has already declared its venture into technical textiles with a capex of Rs. 100 crore in setting up green-field facility at Jhalawar, Rajasthan, with capacity of 4,375 metric tons per annum
Established in 1898, by Shri Vallabh Pittie, SVP Group is engaged in manufacturing of polyester, polyester & cotton blend, and 100-percent cotton yarn across three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). Company has a 125 year legacy in textiles and 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 of SVP Global, said: “The change of name of the Company will provide it exclusive identity of a leading textile manufacturer as we are also venturing into the complete value chain of textiles. Our recent expansion in Oman and foray into technical textiles will lead to substantial increase in revenue by 25 to 30 percent. Oman Plant is expected to achieve optimum capacity in H2FY22. The foray into technical textiles is expected to complement core business of the group and the plant is expected to start commercial operations in 12 to 15 months”.
Recently, SVP Global subsidiary – SV Pittie Sohar Textiles (FZC) commenced commercial operations at its mega textile plant at Sohar Free Trade Zone in Oman. The group has invested $150 million (around Rs. 1,100 crore) in setting up 1.5 lakh spindles and 3,500 rotor facility. The expansion offers many strategic operational and logistics benefits over a long period of time. Total capacity of the company has increased to 4,00,000 spindles and 5,900 rotors.
Company is further investing around Rs. 100 crore in setting up a 4,375 metric tons per annum green-field facility for technical textiles at Jhalawar, Rajasthan. The company plans to manufacture protective uniforms and functional garments, medical textile, mobiltech, anti-odor and antibacterial knitted fabric for medical and cosmetic uses in apparel and expand gradually in other products. The company plans to commence commercial production in 12 to 15 months and expects around Rs. 175 crore revenue per year from the technical textiles.
Maj Gen O P Gulia, SM, VSM (retd), CEO of the group said, “Company has posted sustainable revenue growth YoY and QoQ with excellent PAT margin which stands at over 10 percent. EBITDA margin too has steadily improved to 23 percent in Q2FY22 from 6.1 percent in FY2017. 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. 5,000 crore equivalent to next 2-3 years of revenue.”
For Q2FY22 ended September 2021, the company reported a net profit of Rs. 40.85 crore as against a net profit of Rs. 10.75 crore in Q2FY21, growth of 280%. EBITDA for Q2FY22 was reported at Rs.93.06 crore (EBITDA Margin 23.18%) as compared to EBITDA of Rs. 57.63 crore (EBITDA Margin 15.83%) in Q2FY21, a growth of 61%. Income from Operations for the Q2FY22 was reported at Rs. 405.74 crore, growth of 9% over previous fiscal’s same period income from operations of Rs. 372.28 crore.
SVP Global is among top 2 percent 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. The company’s manufacturing facilities are equipped with latest technology automated machinery equipped with Artificial Intelligence and IOT capabilities from Blow Room to Winding. SVP Global is accredited as an approved supplier for leading brands including IKEA and Zara. Certifications from OCS, GOTS, BCI, OEK-TEX, STD 100, Fair Trade, SUPIMA Gold and ISO. For FY21, Company reported total income of Rs. 1422 crore, EBITDA at Rs. 234 crore and PAT at Rs. 25 crore.
Posted: January 17, 2022
Source: SVP Global Textiles Ltd.