Under the dynamic leadership of Director Chirag Pittie, SVP Global Textiles has raced ahead with a futuristic vision, focused strategy and decision-making along with a senior leadership team that has put SVP Group in the spotlight of the world textile market
India’s leading compact cotton yarn manufacturer and one of the fastest growing multinational textile company, SVP Global Ventures Ltd., will now be known as SVP Global Textiles Ltd. SVP Global Textiles 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 greenfield facility at Jhalawar, Rajasthan with capacity of 4,375 MT per annum.
Established in 1898, by Shri Vallabh Pittie, SVP Group is engaged in manufacturing of polyester, polyester & cotton blend, and 100% cotton yarn across three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Tamil Nadu) and Sohar (Oman). The group 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. Recently, SVP Global subsidiary, SV Pittie Sohar Textiles (FZC), commenced commercial operations at its mega textile plant at Sohar Free Trade Zone in Oman.
Investments
The group’s journey into yarn manufacturing begun in 2007 when under the leadership of its Chairman Shri Vinod Pittie, SVP Global Ventures acquired its first plant in Palani, Tamil Nadu. By 2013, it had acquired plants at Coimbatore and Ramanathapuram (in Tamil Nadu) and ramped up the capacities of manufacturing cotton and cotton blended traditional yarn. In 2016, SVP Global Ventures went big way in modernizing and expansions and set up a state-of-the-art manufacturing unit with an installed capacity of 1,50,000 spindles and 2400 rotors in Jhalawar, Rajasthan in a record time of under nine month.
The company’s manufacturing facilities are equipped with automated machinery equipped with artificial intelligence and IOT capabilities from blow room to winding. It is among top 2% Indian manufacturers with technology less than five years old and output of 153-154 grams per spindle per shift, which is highest in the industry. The company has been accredited with best certifications from OCS, GOTS, BCI, OEK-TEX, STD 100, Fair Trade, SUPIMA Gold and ISO and is an approved supplier for leading brands like IKEA and Zara.
The new-generation director of the company, Chirag Pittie, identified the Sohar Port and Free Zone (located at Sohar in Oman, at the centre of global trade routes between Europe and Asia) as an area of great opportunity and set up a project for the manufacture of a wide range of cotton yarn. The group has invested USD 150 million (around Rs 1,100 crore) and set up a plant with capacity of 1,50,000 spindles and 3,500 rotors facility. With this the total capacity of the company has increased to 4,00,000 spindles and 5,900 rotors, making it the leading compact yarn manufacturer in the world. The Oman plant has been built on lean manufacturing and Industry 4.0 practices, using ultra modern machinery with artificial intelligence (AI) and Internet of Things (IoT) capabilities. The plant is also a ‘green project’ with no smoke, effluent or wastage, and has a safe, clean environment.
Revenue
SVP Global Textiles Ltd has been posting very robust results since 2017. The EBITDA of the company for Q2FY22 was reported at Rs 93.06 crore, a margin 23.18% as compared to 6.1% margin in FY2017. Income from operations for 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. The PAT for Q2FY22 was 40.85 crore, a margin of 10.18% which is an increase of 279.87% YoY. The company has a strong order book of Rs 5,000 crore which will be served in next two/three years. The company manufactures 85% high margin compact cotton yarn which is the highest quality.
Future Expansions
The company has recently declared investment of Rs 100 crore in setting up a 4,375 MT per annum green-field facility for manufacture of technical textiles at Jhalawar, Rajasthan. It 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 Rs 175 crore revenue per year from technical textiles. The company also plans to be a fully integrated textile giant by expanding into the complete textile value chain. It is setting up the garments unit in Oman.