India’s leading compact cotton yarn manufacturer and one of the fastest-growing multinational textile companies, 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 forwarding integration into fabric and garments. It has already declared its venture into Technical textiles with a CAPEX of Rs100cr in setting up a green-field facility at Jhalawar, Rajasthan with a capacity of 4,375 MT per annum.
Established in 1898, by Shri Vallabh Pittie, SVP Group is engaged in the 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 125-year legacy in textiles and has the vision to become a world-leading, fully integrated textile company in manufacturing yarn, fabric and garments.
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%. 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 |2 to 15 months”.
The company said in a filing that 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 USD 150 million (around Rs. I,100 crore) in setting up |.5 lakh spindles and 3,500 rotors 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 Rs100cr 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, anti-odour 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 Rs175cr 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%. EBITDA margin too has steadily improved to 23% in Q2FY22 from 6.1% 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 Rs5,000cr equivalent to next 2-3 years of revenue.”
For Q2FY22 ended September 2021, company has reported a net profit of Rs40.85cr as against a net profit of Rs10.75cr in Q2FY21, growth of 280%. EBITDA for Q2FY22 was reported at Rs93.06cr (EBITDA Margin 23.18%) as compared to EBITDA of Rs57.63cr (EBITDA Margin 15.83%) in Q2FY2I, a growth of 61%. Income from Operations for the Q2FY22 was reported at Rs405.74cr, growth of 9% over previous fiscal’s same period income from operations of Rs372.28cr.
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