New milestone: SV Pittie Sohar Textiles’ factory in Sohar Free Zone to achieve 100 per cent plant utilization by September 21
India’s largest cotton yarn manufacturer, SVP Global Ventures, has announced that its Omani subsidiary, SV Pittie Sohar Textiles (FZC), is gearing up to ramp up production at its plant in Sohar Free Zone to peak capacity next month.
SV Pittie Sohar Textiles owns and operates the Middle East’s first cotton yarn mill at the free zone adjoining Sohar Port, which it set up with an investment of around $150 million. The plant, which forms the nucleus of a proposed textile and fabrics hub at the free zone, features 150,000 spindles and 3,500 rotors.
Significantly, the yarn factory is anticipated to achieve peak utilisation by September 21, 2021, the parent organization said in a regulatory filing this week. Following the completion of the Sohar textile plant, the total operational capacity of SVP Global Ventures has gone up to 400,000 spindles and 5,900 rotors, it said, adding that the Oman operations will contribute significantly to the Group’s overall revenue.
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.”
Maj Gen (Retd) O P Gulia, CEO of SVP Group stated: “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.”
Founded in 1898, SVP Group is engaged mainly in manufacturing polyester, polyester and cotton blend, and 100 per cent cotton yarn. The group has two manufacturing facilities in India: Jhalawar in Rajasthan, and Ramnad in Coimbatore, and one in Suhar in Oman.
Through its investment in the Sultanate, SVP Group Ventures has sought to capitalize on an array of benefits offered by Oman, notably strategic, operational, financial and logistics-related.
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 a number of other countries, it added.