Mumbai-based SVP Global Ventures, the holding arm of Shri Vallabh Pittie Ventures Ltd’s textiles businesses, plans to invest $150 million (about ₹1,095 crore) this financial year for expanding its Oman facility. The company, which has a facility located at Sohar Freezone in Oman, had invested a similar amount in FY21.
The expansion would enable the company double its production capacity of yarn to 3 lakh spindles and 7,000 rotors per year.
“We already have an order book of ₹5,000 crore lined up for the 2-3 years from buyers across global textile markets, which would be serviced mainly from Oman facility. The orders are mainly coming in from Pakistan, Bangladesh, Vietnam, Brazil and Turkey, while some part of it is also from China,” SVP Group Chief Executive Officer OP Gulia told BusinessLine .
About 70 per cent of the total investment would be raised as debt and the remaining 30 per cent would be pooled in from the company’s cash inflows.
The company also plans a forward integration of textiles under its ‘fibre to fashion’ policy. SVP Global Ventures,which currently manufacturers yarn, intends to make fibre, processed fabric and garments.
The company intends to invest about ₹575-690 crore for its forward integration plans, and will add 600 garment machines in Jhalawar (Rajasthan) and 800 in Oman plant. The company intends to modernise its Madurai (Tamil Nadu) plant also.
The company, which is also entering into manufacturing of fine quality cotton yarn, had invested a total of ₹2,300 crore in Indian operations.
The BSE-listed company now plans to list its shares on the National Stock Exchange, for which it has filed a Draft Red Herring Prospectus with the market regulator.
SVP Group has a yarn manufacturing capacity of over 4-lakh spindles and 6,000 rotors in India and Oman, which are operating at above 95 per cent capacity.
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