Trade 18-08-2021 Hits: 3021

Rs. 1,100 crore investment! SVP Global Ventures, an Indian textile company, has opened a facility in Oman

Trade 18-08-2021 Hits: 3021

18th August 2021, Mumbai:

SVP Global Ventures, a leading global cotton yarn producer, has begun commercial operations at its massive textile factory in Oman. In Oman's Sohar Free Trade Zone, the Group has spent US $ 150 million (about Rs. 1,100 crores) in the installation of 1.5 lakh spindles and 3,500 rotors.

The facility is anticipated to achieve full capacity next month and contribute significantly to the company's overall income. SVP Global is an approved supplier for a number of well-known brands, including IKEA and Zara.

SVP Group, founded in 1898 by Shri Vallabh Pittie, specializes in the production of polyester, polyester & cotton mix, and 100% cotton yarn at three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore), and Sohar (Rajasthan) (Oman). This extension will provide long-term strategic operational and logistical benefits. It provides 100% foreign ownership, a cheap cost of capital, and lower electricity costs, in addition to a 25-year corporation tax break. In comparison to India's domestic market, power costs are 40% cheaper.

Oman also has FTAs with the United States, Turkey, and a number of other nations. It also has zero import and re-export tariffs. The company's overall operational capacity has grown to 4 lakh spindles and 5,900 rotors with the completion of the expansion at Sohar. “The robust demand for high-margin combed compact cotton yarn, along with sales off-take agreements, will allow us to fully use the expanded capabilities and add value for our stakeholders,” says the company. Chirag Pittie, the company's Director, stated, "We have a mission to be the world's top integrated textile producer."

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“Our Group is now poised to venture into the full value chain of textile,” stated Major Gen OP Gulia, SM, VSM (Retd.). The company's order book presently stands at Rs. 5,000 crore, which is enough to cover income for the next 2-3 years.” It's worth noting that the company's financials for the first quarter of FY22 were strong, with net sales of Rs. 412 crore, up over 300 percent year on year, and a net profit of Rs. 39 crore (PAT margin of 9.5 percent). The firm recorded a total income of Rs. 1,422 crore and profit after tax of Rs. 25 crores for FY21. The firm claims to be among the top 2% of Indian manufacturers, with technology less than 5 years old and the industry's maximum production of 153-154 grams per spindle each shift.

SOHAR Port and Freezone