SVP GLOBAL TEXTILES LIMITED has informed the Exchange about Investor Presentation
SVP GLOBAL
TEXTILES LTD.
SVP GLOBAL TEXTILES LIMITED (Formerly Known as SVP Global Ventures Ltd.) 97, Maker Tower ‘F’, Cuffe Parade, Mumbai — 400 005. Tel. : 4029 0011
Fax : 4029 0033
Email: contact@pittie.com CIN: L17290MH1982PLC026358 Website: www.svpglobal.co.in
Date : 24 March, 2022
To,
The BSE Ltd. Phiroze Jeejeebhoy TowersDalal Street Mumbai - 400 001 Fax No.: 022 22722041 Company Code: 505590
The Listing Department The National stock Exchange of India Ltd. Exchange Plaza, C- 1, Block-G, Sandra- Kurla Complex, Bandra (E)Mumbai- 400 051 Fax No.: 022-26598237/38 Company Code: SVPGLOB
Sub. :
- Intimation under Regulation 30 of SEBI (LODR) Regulation, 2015
Dear Sir/ Madam,
In Compliance of Regulation 30 of Schedule Ill of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Please find enclosed herewith SVP Global Textiles Limited Investor Presentation on the Un-Audited Financial Statements for the quarter ended 31* December, 2021.
This is for your information and records.
Thanking you,
Yours faithfull For SVP Glo!
Diwakara Rao CFO
INVESTOR PRESENTATION March 2022
COMPANY OVERVIEW
SVP at a Glance
200 years of Combined experience of Promoters & Management
India’s one of the Largest manufacturer of Compact cotton yarn with an installed capacity of 400,000 Spindles & 5,900 Rotors across India & Oman
Co. is among 5% of Indian manufacturers who have technology ageing less than 5 years
Higher Margins due to various tax exemptions, Interest subsidy and subsidised power tariff
Legacy of 100 years in the Textile business
Strong order book of INR 50,000 Mn. 20-30% revenue growth expected after Oman plant, as Oman being the centre of global trade routes between Europe and Asia
Becoming fully integrated Textile co. from fibre to fashion with forward integration into fabric, garments and Technical textiles
Highest level of certification including ISO, GOTS, OCS,OEK-TEX-STD100 and an approved supplier to IKEA, Zara and Inditex.
3
Company Overview
• SVP Global Textiles Ltd. (SVP) group Established in 1898 by late Shree Vallabh Pittie.
• SVP is one of the largest and fastest growing manufacturer in the value added
higher margin compact cotton yarn, blended yarn and open-end yarn.
• Professionally managed company led by promoter Mr. Chirag Pittie and backed by an experienced Management team with 200+ years of combined experience in the Textile business.
• The company has three units in Jhalawar district of Rajasthan to manufacture compact cotton yarn and also one export-oriented unit in Oman manufacturing Cotton Yarn to export to Europe, Gulf and North & South America regions.
• It has a strong Focus on Automation and Technology resulting in better productivity and throughput. Latest technology from Rieter (Switzerland), Electro-jet (Spain). LMW (India) and Schlafhorst (Germany).
• Efficient procurement system for sourcing superior quality raw material
for manufacturing higher quality yarns from countries like USA, Brazil, Turkey and New Zealand.
• Well established Sales distribution network in domestic and export markets with
exports to many countries in Americas, Europe and Asia.
Operating income (INR Mn)
14,098
14,057
12,234
FY20
FY21
9M-FY22
Segment contribution
16%
84%
37.5%
62.5%
Tradional Yarn
Compact cotton yarn
Oman operations
India operations
4
Industry Leading Parameters
Among the lowest capital cost in the Industry
State of Art machinery using latest technology and artificial intelligence
Highest Operational Efficiency
Wider market access through diversified operation
Strong order book with Sustainable high margins
Subsidized power cost leading to better margins
Strong focus on Debt Reduction
Tax Exemption & operating efficiencies in Oman
5
Fastest growing multinational in Cotton Yarn manufacturing
Margin expansion Manufacturing of high margin compact yarn leading to margin expansion of ~950 bps between FY16 to FY20
Highest quality value added compact cotton yarn Shifting of manufacturing capabilities from Traditional yarn to High quality compact cotton yarn
Expansion in end user segment Multiple usage & expansion of our end user segment ensuring diversity in revenue & end markets
Growth in capacities We have reached an aggregate capacity of 4,00,000 Spindles & 5,900 Rotors. Our capacity addition has been in the high margin Compact Cotton Yarn product
Lowest cost of capital & operational cost among peers / Highest output per spindle Extension technological advancement coupled with operational efficiencies leads to lowest operational cost among peers. 153/154 grams per spindles for 40 count yarn, which is highest among the industry standards
6
Key Milestones
From being a trader and manufacturer of traditional yarns, SVP has successfully transformed itself into one of the leading players in the high value Compact yarn business.
Acquisition of Palani unit (Tamil Nadu)
Acquisition of Coimbatore unit (Tamil Nadu)
Revenue crosses INR. 10,000 Mn
Commenced production of 2,400 Rotor facility at Jhalawar
Amongst the largest Compact Yarn player in India
Inauguration of 150,000 Spindles Unit at Oman
co. to invest Rs. 100 cr to set up technical textiles facility at Jhalawar, Rajasthan.
SEPT 2007
AUG 2010
MAR 2015
JAN 2017
MAY 2017
NOV 2019
NOV 2021
PRE SEPT 2007
Manufacturing through 3rd party facilities
JUL 2010
MAR 2013
JUN 2016
APR 2017
Acquisition of Ramnad unit (Tamil Nadu)
Revenue crosses INR. 5000 Mn
Commenced Additional capacity of 50,000 spindles of Compact Yarn facility at Jhalawar
Commenced production of Compact yarn at Jhalawar (Rajasthan) in a record time of under 9 months. Installed capacity of 100,000 Spindles
DEC 2018
Inauguration of 3,500 Rotors Unit at Oman
2020
Exiting of low margin businesses and non core assets
7
Board of Directors
Mr. Chirag Pittie : Whole Time Director Qualifications: Holds BSBA degree in Finance and Management from Boston University, USA
Experience: Has more than 16 years of experience in He has the vision of Finance & Management. converting the close family held business into a leading public company delivering superior returns to shareholders
Mr. Jinesh Shah : Independent Director Qualifications: He is Qualified Chartered Accountant
Experience: Has more than 12 years of experience in Statutory audit, Tax audit, Implementation of GST, IFC in listed & Private Companies, Budgeting report & Variance Analysis
Mrs. Bhagwati Donga : Independent Women Director Qualifications: Holds Master of Commerce (M.Com) & Bachelors in Education (B.Ed)
Experience: Has more than 3 year of experience in the Education field & specialized in Organization of Commerce & Management Secretarial Practice
Mr. Praveen Shelley : Non-Executive Director Qualifications: He is Certified Administrator from Michigan, USA
Experience: Has more than 30 years of experience in Marketing, Public Relations, Partnership Building and Product Management
Mr. Niraj Lahoti : Independent Director Qualifications: He is Qualified Chartered Accountant, Diploma in Information Company Secretary and System Audit (DISA - ICAI)
Experience: Has more than 5 years of experience in filing of returns, accounts & audit, registration of firms and closure of companies
Mr. Prakash Vaghela : Independent Director Qualifications: He is a qualified Chartered Accountant, Cost & Works Accountant, LLB(G) and Diploma in Information System & Audit, DISA
Experience: Has experience in Banking, Corporate Governance, Audit Assurance and Compliances, Direct and Indirect Tax Advisory and certification field
8
Key Management Personnel
Major General OP Gulia SM, VSM (retd)
CEO
37 years meritorious career in Indian Army, decorated with gallantry award. He possesses strong ability in leading organisations under challenging conditions.
CA . S . Ram Santhanam
Deputy. CEO
Senior CA and Graduation. 40 years experience in Projects, Finance, Accounting, Law, Compliances and international Banking.
Mr. Diwakara Rao
Chief Financial Officer
M.com, CAIIB with 30 years of experience in Banking at various in Banking Rules, Procedures, Policies and Guidelines.
levels. Well versed
Mr. Narendra Jain
Vice President – Finance He has more than 22 years experience in the field of Finance, Accounts, MIS & Budgeting. He has worked with reputed companies like Maral Overseas Ltd,Welspun Groupand LNJ.
Mr. Prashant Pillai
Vice President – Marketing
More than 20 years experience with companies like Gujarat Ambuja Exports Limited and Century Textiles and Industries
Mr. Rajpal Singh Sekhawat
Vice President – Projects
Has more than 15 years of experience in Administrative, HR and Project works.
Mr L.R Nishad
Unit Head – Jhalawar Operations
starting with a BTech(textile), employed with M/s. Pasupati Spg & Weaving mill, Vardhman Textiles, SEL, Welspun Vardhman textile Ltd. Now at SVP, Jhalawar.
Mr. Surender Singh
Sr Manager SQC
Diploma in Textile Technology, He is the reason that we can control and develop defective free products. More than 16 years exp. with Nahar and SEL.
9
Geographical Footprint
Raw Material Sourcing
India
USA
Brazil
Pakistan Turkey New Zealand
USA
Mumbai
Oman
Mumbai
Americas Exports • Brazil • Chile • Columbia • Mexico
EMEA Exports • Belgium • Portugal • Spain • Turkey
Asia Exports • China • Bangladesh • Pakistan • South Korea
Sohar, Oman: Spindles: 1,50,000 Rotors: 3,500
Jhalawar, Rajasthan: Spindles: 1,50,000 Rotors: 2,400
Jhalawar
Tamil Nadu: Spindles: 98,000
Ramnad
Corporate Office
Manufacturing facilities
International Offices
New Manufacturing facility
10
Customer Base and Yarn end markets
• Diversified customer base with no single customer with more than 5% of revenues
• Longstanding relationships of over 10 years with 40% of the customers
• Sales offtake agreement with existing customer ensures near peak capacity utilization
• Approved supplier to IKEA, Zara and Inditex, which provides us opportunity to supply yarn to
suppliers of these two companies.
End Markets
Order book of over INR 50,000 Mn; equivalent to next 2-3 years revenue
Circular Knitting
Socks Knitting
Sweaters
Key Customers
Denim Fabrics
Towel Weaving
Sheeting
Shirting
Weaving
Yarn Dyeing
11
SVP Global Sustainability Practices
Global certification and memberships ensuring preferred vendor status with leading global textile manufacturers
GOTS is a voluntary global standard for the entire post-harvest processing (including spinning, knitting, weaving, dyeing and manufacturing) of apparel and home textiles made with certified organic fibre (such as organic cotton and organic wool), and includes both environmental and social criteria
Global Organic Textile Standard
Organic Content Standard (OCS)
OCS is an international, voluntary standard that sets requirements for third-party certification of certified organic input and chain of custody. The goal of the OCS is to increase organic agriculture production
OEKO-TEX consists of 18 independent institutes in Europe and Japan. Together we are continuously developing test methods and limit values for the textile and leather industry, we provide important boosts for innovation and thus make a significant contribution to the development of high-quality products
Global Recycle Standard (GRS)
GRS is an international, voluntary, full product standard that sets requirements for third-party certification of recycled content, chain of custody, social and environmental practices and chemical restrictions
Fairtrade Textile Standard is one component of the greater Fairtrade Textile Programme to facilitate change in textile supply chains and related business practices. This comprehensive approach engages manufacturers and workers in the supply chain to bring about better wages and working conditions, and engages brands to commit to fair terms of trade
BCI is a global not-for-profit organisation and the largest cotton sustainability programme in the world. BCI exists to make global cotton production better for the people who produce it, better for the environment it grows in and better for the sector’s future
Better Cotton Initiative (BCI)
US Cotton Trust Protocol sets standard for more sustainably grown cotton. It brings quantifiable and verifiable goals and measurement to the issue of responsibly grown cotton production and drives continuous improvement in key sustainability metrics
The primary purpose of the program is to promote and protect the SUPIMA® trademark globally, while growing awareness and consumption of U.S.- Grown Pima Cotton
Supima
OEKO-TEX
Fairtrade Textile Standard
US Cotton Trust Protocol
ISO Certified Compact Cotton Yarn Manufacturer
12
BUSINESS OVERVIEW
13
Jhalawar (India) Manufacturing Facility
Installed capacity of 150,000 spindles and 2,400 rotors with automated machinery, AI and IOT capabilities
• Manufactures high quality Compact Yarn (Count range 20 to 60) and Open End Yarn in Rajasthan and blended Yarn (high quality) with Count range 20 to 60 in Tamil Nadu
• Benefits of Jhalawar Plant:
i) Technology Upgradation Fund Scheme (TUF) interest subsidy :- 2% (available
for 1,00,000 spindles units)
ii) State interest subsidy :- 6% + 3% i.e. 9 - 11% p.a., under the Rajasthan
Investment Promotion Scheme
iii) Power benefits :- 100% electricity rebate
• Equipped with the most modern technology from Blow Room to Winding with
plant operating at 95%+ capacity utilisation
• Manufacturing facilities over an area of 60 acres. Proximity of 5 km from city
centre, 12 km from Jhalawar Airstrip and 2km from Railway Station.
• Plant and machinery sourced from Rieter (Switzerland), Electro-jet (Spain),
LMW (India) And Schlafhorst (Germany)
• World Class Laboratory for Quality control using technology of Uster
(Switzerland)
• Consistency in yarn quality monitored by Loepfe Brothers (Switzerland)
• Zero Effluents and Zero smoke manufacturing facility.
• 5MW Solar plant installed, providing low cost power.
Blow Room
Draw Frame
14
Comber
Sohar (Oman) Manufacturing Facility
•
Installed capacity of 150,000 spindles and 3,500 rotors at Project cost $ 150 Mn. Manufacturing high quality, value-added, high margin compact cotton yarn
• First major Cotton Spinning Unit in GCC Region; will promote development of
Textile cluster in Oman. Promote social and economic development.
• Allocated 27 hectares land by SFZ for a period of 25 years (renewable) for the
Project; Power and water availability.
• Phase 1 operational; currently exporting to China, Bangladesh, Pakistan, Turkey,
Egypt, Germany, Vietnam, Portugal, etc.
• Exclusive state of art infrastructure equipped with latest and most modern technology from Blow Room to Winding. World-class laboratory for quality control using technologies from Uster (Switzerland). Operations are built on lean manufacturing and Industry 4.0 practices, with automated machinery, artificial intelligence and IOT capabilities
• Technology from Suesen (Switzerland), Schlafhorst (Germany), Loepfe Brothers
(Switzerland), Savio Machine (Italy) and LMW (India).
Cotton Yarn Rotors Unit (Phase MI) in Oman was inaugurated by His Highness Sayyid Taimur Bin Assad Bin Tariq Al Said on December 13, 2018.
Cotton Yarn Spindles Unit (Phase M1) in Oman was inaugurated by His Excellency Sheikh Abdullah Bin Nasser Al Bakri, Minister of Manpower, Sultanate of Oman on Nov 2019
• Forward integration started by expanding into garment manufacturing.
SOHAR FREE ZONE
• Fastest
growing
fully developed port, and free-zone developments in Oman
and
• Logistic
excellent connectivity
efficiencies road,
through port and air
• 100% % foreign ownership, free repatriation of capital and profits
• 25-year corporate tax holiday
• Zero percent import or re-export
duties
• Free Trade Agreements with like Pakistan, Turkey
countries and USA
• Low power
(40% lower India) and cost of debt (4%)
than
15
Incentives & Subsidies
✓ Unit in Jhalawar, enjoys various benefits from Rajasthan Government including:
i) Technology Upgradation Fund Scheme (TUF) interest subsidy :- 2% (available for
1,00,000 spindles units)
ii) State interest subsidy :- 6% + 3% i.e. 9 - 11% p.a., under the Rajasthan Investment
Promotion Scheme
iii) Power benefits :- 100% electricity rebate
✓ Unit in Oman enjoys various operational and logistic efficiencies & incentives including
Strategic benefits of OMAN
01
02
03
04
05
06
07
Proximity to Port
Tax Free Zone
FTA of Oman with USA
Low Power Tariffs
Low Logistical Cost
Low Cost Borrowings
Competitive Land Value
16
Technological Edge
India has around 50 million Spindles capacity out of which around 95% capacity is older than 5 years. Further, around 80% capacity is older than 10 years Whereas SVP Global yarn manufacturing capacities is one of the latest and the most technologically advanced on the block among its competitors
The state-of-art machinery with latest technology from Europe and India,
use Artificial Intelligence to manufacture Yarn of the highest quality at optimum operational efficiency
Spin Connect
Linkconer
Loepfe Clearer
Allows Controlling of every single machine from computer
CAP - Controls yarn layering without changing drum speed.
CAM – High precision metering reducing waste upto three times
Lab Pack - Complete Monitoring for constant quality
Polypropylene Sensor – Provides maximum cleaning efficiency
Mill Master - Delivers online data in real time
17
STRATEGIC OVERVIEW
18
Business Strategy
Change in the product mix (Traditional to Compact yarn)
Expansion of manufacturing capacities
Increasing the Global reach (Manufacturing base at Oman)
From Trading Business to Manufacturing Business
De-leveraging Balance sheet
19
1.0 Transformation from trading to manufacturing business
“Continued focus towards improving profitability with each expansion”
Legacy of 100 years+ into textile business
Deep Understanding of Yarn Market
Experienced in Yarn Trading
Leverages its Experience & enters manufacturing
Forays into Manufacturing
Expansion of Manufacturing Capacities
Largest manufacturer of Compact Yarn
20
2.0 Expansion of Manufacturing capacities
Capacity Built-up over the years
2007-2008
2010-2013
2016-2017
2019
2020/21
398,000
150,000
50,000
7,000
Palani
9,000 Coimbatore
51,000
Ramnad I
Ramnad II
Jhalawar I
Jhalawar II&III
Oman
Total
100,000
31,000
~4,00,000 spindles
~5,900 rotors
Manufacturing Yarn from 6 to 100 Count
21
3.0 Change in the Product Mix – Foray into Compact Yarn
Foray into Compact & Specialised Yarn
Compact & Specialised Yarns •
Organic Cotton Yarn
Traditional Yarn
•
•
•
•
Single Ring Yarn
Double Ring Yarn
Single Open-End Yarn
Double Open-End Yarn
•
•
•
•
•
•
•
•
Fair trade Certified Cotton Yarn
Compact Yarn advantage
Long Staple Cotton Yarns/Pima Cotton Yarns
Bamboo/Cotton Yarns
Compact Yarn
Contamination Free Yarn
Reverse Twist Yarns
Recycled Cotton Yarn
Slub Yarns
Smoother yarn with higher lustre
40-50% improvement in abrasion fastness
20-30% lower hairiness as measured by the Ster apparatus
60% lower hairiness as measured by the Zweigle apparatus
Gross Margin
27.3%
30.2%
29.6%
10.1%
15.2%
FY17
FY18
FY19
FY20
FY21
EBITDA Margin
FY 2016
20.0%
Revenue Mix (%)
Traditional yarn Compact yarn
FY 2021
16.0%
80.0%
84.0%
Spinning mills with exclusive Automation & Technology
8-15% higher tenacity and elongation at break
17.3%
18.5%
16.5%
10.8%
7.1%
Smaller mass irregularity
~8% increase in production
FY17
FY18
FY19
FY20
FY21
22
4.0: Expanding Reach – Strategic decision to expand Exports
Sohar is one of the fastest growing Port and Freezone developments in Oman, with a
strategic location and connections to Asia, Europe and the Americas
Sohar is Oman’s major port city with the 2nd largest population in Oman
01
The Sohar Port and Freezone is a 50:50 JV between Oman Government and Port of Rotterdam
02
Salient features of SoharFree-zone
07
Deep sea port with 25m drafts, located outside the Strait of Hormuz
03 03
05
06
Access to key transportation links: ▪ Sea links with regional port connections ▪ Highway network connecting major GCC hubs ▪ Cargo airport with 50,000 tons / year of capacity
100% % foreign ownership, free repatriation of capital and profits, and 25-year corporate tax holiday. Zero percent import or re-export duties
04
Region’s largest bulk port with the deepest jetty in the Gulf
Logistic efficiencies through excellent road, port and air connectivity to cotton & yarn hubs for the global market
23
5.0 De-leveraging Balance sheet
Hive off Non Core Assets ▪ Gradually hive off the non-core assets with old technology and invest into technologically advances machines for producing high quality compact cotton yarn
▪
Add new customers and expand geographies for domestic as well as exports of high compact yarn
Release of Working Capital & Monetization of Old Assets
Reduce Debt
▪ Monetise the non-core asset and re- invest into high return accretive products and
business
▪
Technological advancement leading higher operational efficiencies and release of working capital
Focus on debt reduction through efficient working capital management & higher asset turns
Expand into Garmenting
▪
▪
▪
Plans of entering into garmenting sector and focus on high margin business
Forward integration into garmenting with expertise in Yarn manufacturing
Leveraging the existing capabilities to foray into garmenting business
Becoming an Integrated Textile
Garment Manufacturer
24
Strategic Future Outlook
GrowthReady
Value added products to drive growth
Various incentives to boostprofitability
Favourable Industry Dynamics
Foray into Technical Textiles
• • •
•
•
•
•
•
•
One of leadingmanufacturerof compactcottonyarnwithaggregatecapacityof 400,000 Spindles and5,900 Rotors. Further, 150,000 Spindles and3,500 Rotors capacityproposed inOman. Stateofthe arttextileunits usinglatesttechnologyforbetteroperational efficiencyandthroughput.
Strategiclocation in various geographies for better access to regional and global markets.
Compact yarn facilities to boost exports, yield higher realization and alter product mix in favour of higher margin business.
Strategytofocuson valueadded products andexportstodrivestrong toplinegrowthandleadtoasteadyand improvedmarginprofileinthelong term.
Company enjoyscustomizedincentivesreceivedfromtheRajasthanGovernment whichincludes power tariff reductions which along with premium products, lower wastage, and higher operating efficiency significantly boosts theprofitability. Unit inOman enjoysvariousoperationalandlogisticefficiencies includinglandavailability, lowerpowercosts,port infrastructure andaccessibility,FTAs, low costofcapital,taxexemptions
India has world’s2nd largest spinning capacityand30-35%of cottonyarnproduction is exportedwithexports having grown atastrong15% CAGRoverlast4 years.
• Becoming fully integrated Textile co. from fibre to fashion with forward integration into fabric, garments and Technical
textiles
25
High Entry Barriers & Competitive Advantage
Large capacity build up over last 5 years in India and Oman.
1
High Barriers to Entry + Competitive Advantages
5
2
4
Machine combination and efficient utilization has resulted in higher Spindles Yarn output of 153-154for 40 count yarn, relative to lower output by our competitors.
Sustainable EBIDTA Margins with use of high-end technology which is used by less than 5% of industry in India
3
Interest subsidies available to company in Rajasthan is now not available for anyone setting up new capacities
Global presence with project in Oman having competitive advantages of low cost of Land, Power & Capital
26
Industry Overview
27
Indian Yarn Industry
Cotton Yarn Production in India (Mn kgs)
Segment-wise Yarn Production in FY20 (Mn Square Meter)
5,665
5,659
5,680
5,890
4,762
FY16
FY17
FY18
FY19
FY20^
6,829
6,818
6,867
7,050
4,138
4,055
4,064
4,208
1,527
1,164
1,604
1,159
1,616
1,187
1,682
1,160
6,189
3,332
1,431
1,426
FY16 Man Made Filament
FY17
FY19 FY18 100% Non-Cotton
FY20^ Cotton
• Production of yarn grew to 5,890 million kgs in FY19 from 5,665
millionkgsinFY16.
• Cotton yarn, a major segment in FY20^, accounted for more than 54% share in yarn production. Over the past 5 years, Indian cotton yarn production has risen steadily. The growth in production is largely driven by increasing export volumes and steady domestic consumption.
• The size of India’s textile market as of November 2017 was around US$ 150 billion, which is expected to touch US$ 223 billion market by2021,growingat aCAGRof 10.14% between2009 to2021.
• New Govt. scheme Remission of Duties and Taxes on Exported Products (RoDTEP) will give additional benefit of 3.8% on your FOB valueof exports.
Textile Commodities Export in India*
Share of Indian Textile in Export*
Share of Indian Textile in Export*
Indian Apparel Market
Commodities
RMG of all Textiles
Cotton Yarn
Manmade Yarn
Handicrafts
Carpet
Jute Mfg
Value (US$ Mn)
1349.13
947.58
411.97
179.27
136.21
42.00
RMG of all Textiles Cotton Yarn Manmade Yarn Handicrafts Carpet
Carpet Jute
1%
6% 5%
13%
42%
33%
Source: IBEF (Indian Brand Equity Foundation), Care rating Industry Report, Texprocilcouncil, and Ministry of Textiles, TSSIndia. * Upto Feb 2021 ^Provisional
78
55
89
FY19
FY20
FY21-24
FY25E
28
Global Yarn Industry
Global capacity; 250 MillionSpindles SALES
Global cotton production 26 Million Tonne
Global YarnProduction 39 Million Tonne
RoW 81 Mn, 32%
India 49 Mn, 20%
RoW 13 Mn, 36%
SALES
India 7 Mn, 20%
RoW 13 Mn, 33%
India 5 Mn, 13%
China 21 Mn, 54%
China 120 Mn, 48%
China 16 Mn, 44%
• The Global market for textile fibre is projected to reach 124.6 million tons by 2022, driven by the development and launch of innovative blends of textile fibers & yarns, expanding applications and rising demand in emerging countries.
• China & India are the largest Cotton yarn producers in the
World.
Indian’sshareof GlobalTextilemarketwillincreaseas:
•
•
•
China + 1 Strategy firming up
Indian Government’s thrust on Aatmanirbhar Bharat & being ‘Vocal for Local’.
Economies of scales & incentives by government to boost margins & allow to compete worldwide
2 2 Y F o t 2 1 Y F
. n o i l l i b D S U t e k r a M n r a Y
l a b o l G
Forecast 155.9
4.3%
CAGR FY17-FY22 CAGR FY17-FY22
99.3
106.0
111.6
112.9
120.7
126.1
155.9
FY12
FY13
FY14
FY15
FY16
FY17
FY22
Source: WTO, International Textile Outlook, Fiber organ and Internal Studies, VardhmanTextile.
4.9%
CAGR FY12-FY17
29
Financial Overview
30
FY21 Financial Highlights
Total Operating Income (INR Mn)
EBIDTA & EBITDA Margin (in %)
PAT &PAT Margin (in % )
14,098
14,057
12,234
2,328
2,174
16.5%
15.5%
2,732
50.0%
22.3%
0.0%
FY20
FY21
9M-FY22
FY20
FY21
9M-FY22
511
3.6%
FY20
249
1.8%
FY21
1,213
9.9%
9M-FY22
90.0%
40.0%
-10.0%
Exit from low margin business leading to revenue rationalisation
Focus on high compact yarn
Technology &Operational Excellence
Leading to Expansion in Margins
31
Historical Consolidated Financial Performance
INCOME STATEMENT (INR Mn)
Operating Income
Other Operating Income
Total Operating Income
Operating Expenses
EBITDA
EBITDA Margins (%)
Finance Cost
Depreciation
Other Income
Profit Before Tax
Tax
Profit After Tax
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Basic EPS (INR)
FY19
13,486
441
13,927
11,856
2,071
14.87%
1,368
609
413
507
45
462
3.32%
4
466
36.81
FY20
13,555
543
14,098
11,770
2,328
16.51%
1,292
847
339
528
17
511
3.62%
10
521
41.19
FY21
12,625
1,432
14,057
11,883
2,174
15.47%
1,251
840
167
250
1
249
1.77%
2
251
1.98
9M-FY22
11,930
304
12,234
9,502
2,732
22.33%
938
640
59
1,213
-
1,213
9.91%
-
1,213
9.59
32
Historical Consolidated Balance Sheet
FY20
FY21
H1-FY22
Particulars (INR Mn)
FY20
FY21
H1-FY22
21,660
23,440
23,784
Equity
Particulars (INR Mn)
Non-Current Assets
Property, plant and equipment
Capital work-in-progress
Goodwill
Other intangible assets
Financial assets
(i) Investments
(ii) Loans
Other non-current assets
Current Assets
Inventories
Financial assets
(i) Trade receivables
(ii) Cash & Bank Balances
(ii) Loans, Deposits & Advances
Other current assets
Total Assets
Non-Current Liabilities
17,406
16,834
17,372
11,042
6,658
3,903
1
57
-
-
9,407
7,924
5,094
863
8,977
8,721
5,084
849
153
153
-
-
-
-
17,112
15,237
15,643
4,252
3,148
3,296
7,263
1,275
-
5,533
217
-
4,912
207
7,229
Equity share capital
Other equity
Non controlling interest
Financial liabilities
(i) Borrowings
Provisions
Deferred tax liabilities (net)
Current liabilities
Financial liabilities
(i) Borrowings
(ii) Trade payables
Other current liabilities
10,756
12,482
13,121
127
8,393
2,237
127
127
9,558
10,138
2,797
2,856
17,350
16,775
17,312
21
35
24
35
25
35
10,610
9,361
8,934
6,775
2,910
922
2
6,585
773
1,819
183
6,298
1,219
1,077
340
4,322
6,339
-
Provisions
38,772
38,677
39,427
Total Equity & Liabilities
38,772
38,677
39,427
33
Capital Market Data
1 Year Stock Performance (Up to 31st December, 2021)
SVP Global Textiles
Sensex
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Price Data (31st December, 2021)
Current Market Price (INR)
52 Week H/L (INR)
Market Cap (INR Mn)
Equity Shares Outstanding (Mn)
1 Year Avg. trading volume ('000)
Shareholding Pattern (31st December, 2021)
75.7
164.8/62.1
9,568.48
126.4
524.62
Non-Institutional 32.14%
FPI 0.28%
Promoter 67.58%
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Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of SVP Global Textiles Limited (“Company” or “SVP”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further information please contact our Investor Relations Representatives:
Valorem Advisors Mr. Anuj Sonpal, CEO Tel: +91-22-49039500 Email: svp@valoremadvisors.com
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Thank You