India's largest compact cotton yarn manufacturer SVP Global on Tuesday announced commercial operations for its mega textile plant in Oman.
The company has invested Rs 1,100 crore in setting up 1.5 lakh spindles and 3,500 rotors facilities at Sohar free-trade zone in Oman.
The expansion in Oman offers many strategic, operational, financial and logistics benefits. These include a lower capital and power cost as compared to the home market in India, negligible import/export duties and over 25 years of corporate tax holiday.
Oman also has free trade agreements with the United States, Turkey and many other countries.
"Our manufacturing facilities are operating at near peak capacity and the Oman facility is planned to reach peak utilisation by September 21," said CEO Maj Gen O P Gulia.
"The 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," he said.
SVP Group reported robust financials for Q1 FY22 with sales of Rs 412 crore and growth of over 300 per cent year-on-year. Its EBITDA stands at Rs 91 crore and net profit at Rs 39 crore.
The company's order book now stands at Rs 5,000 crore, equivalent to upcoming two to three years of revenue.
SVP Global is an approved supplier for leading brands like IKEA and Zara and its manufacturing output aided by AI and IoT capabilities is one of the highest in the industry.
