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SVP Global Ventures, a leading cotton yarn manufacturer, has started commercial operations of the expanded capacity at its mega textile plant in Oman. The Group has invested $150 million (about ₹1,100 crore) to set up 1.5 lakh spindles and 3,500 rotors facility at Sohar Free Trade Zone in Oman.
With the completion of the expansion at the Sohar plant, the company’s total capacity will increase to 4 lakh spindles and 5,900 rotors.
The plant is expected to reach peak utilisation by September.
Established in 1898, SVP Group is primarily engaged in manufacturing polyester, blended polyester and cotton yarn, and pure cotton yarn across three modern manufacturing facilities at Jhalawar at Rajasthan, Ramnad in Coimbatore and Sohar (Oman).
The company has an order book of ₹5,000 crore equivalent to the next 2-3 years of revenue.
Chirag Pittie, Director, SVP Group, said the strong demand for high margin combed compact cotton yarn coupled with sales off-take agreements will enable the company to fully utilise the new capacities.
Host of benefits
SVP Group expansion at Sohar Free Trade Zone in Oman offers many strategic, operational and logistics benefits over a long time. In addition to 25 years corporate tax holiday, it provides 100 per cent foreign ownership, a low cost of capital and less power cost.
Power cost is 40 per cent cheaper compared to India. Oman also has Free Trade Agreements with the US, Turkey and many other countries. Additionally, it offers zero per cent import or re-export duties.
Maj Gen O P Gulia, CEO of the Group, said the strategic growth initiatives, enhanced capacity and operational efficiencies, product and geographical expansion with a focus on high margin products are likely to drive profitability and contribute to the company’s growth.
The company's manufacturing facilities are equipped with the latest technology automated machinery, artificial intelligence and IoT (internet of things) capabilities from Blow Room to Windling. SVP Global is accredited as an approved supplier for leading brands, including IKEA and Zara.
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