SVP Global Ventures Ltd, India’s largest compact cotton yarn manufacturer has announced commercial operations for its mega textile plant in Oman. The Group has invested USD 150 million in setting up 1.5 lakh spindles and 3,500 rotors facility at Sohar Free Trade Zone in Oman.
Established in 1898, by 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).
Commenting on the development, Chirag Pittie, Director, SVP Group, said, “The expansion of Oman plant consisting of 150,000 spindles and 3,500 rotors has been successfully completed and is expected to fully contribute to the financial performance starting September 2021. The strong demand for high margin combed compact cotton yarn coupled with sales off-take agreements will enable us to fully utilise the new capacities and enhance value for our stakeholders. We have a vision to be a leading integrated textile manufacturer of the World.”
SVP Group expansion at Sohar Free Trade Zone in Oman offers many strategic operational and logistics benefits over a long period of time. In addition to 25 years corporate tax holiday it offers 100% foreign ownership, low cost of capital and less power cost. Power cost is 40% less compared to the home market in India. Oman also has Free Trade Agreements with the USA, Turkey and many other countries. Additionally it offers zero percent import or re-export duties, the statement said.
Maj Gen O P Gulia, SM, VSM (retd), CEO of the Group said, “Our manufacturing facilities are operating at near peak capacity and the Oman facility is planned to reach peak utilization by Sep 21. 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.”
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.