Svp Global Ventures Limited has informed the Exchange about Investor Presentation
SV Pp
GS L ®OBAL VENTURES LTD.
SVP GLOBAL VENTURES LIMITED 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: July 26, 2021
To
The BSE Ltd. Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Fax No.: 022 22722041 Company Code: 505590
Sub. : -Investor Presentation
Dear Sir/Madam,
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
In Compliance of Regulation 30 of Schedule II
of SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015, please find enclosed herewith the Earnings Presentation on the Un-Audited Financial Results
for the quarter ended on June 30, 2021
This is for your information and record.
Thanking you,
For SVP Global Ventures Limited
et ee
<z
Chirag Pittie
Director
DIN: 00117368
Encl: As above
Q1 FY2022 Earnings Presentation
SVP GLOBAL
VENTURES LTD.
The Fastest Growing Cotton Yarn Manufacturer
Q1 FY2022 Highlights
SVP GLOBAL
|
|
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Rs. 412 Crores Total Income
Rs. 136 Crores Gross Profit
Rs. 91 Crores EBITDA
Rs. 39 Crores PAT
Q1 FY21: Rs. 100 Crores
Q1 FY21: Rs. 23 Crores
Q1 FY21: Rs. (2) Crores
Q1 FY21: Rs. (57) crores
Chirag Pittie Wholetime Director
“Our performance during Q1 FY2022 was encouraging, and we recorded Total Income of Rs. 412 crores, which quadrupled compared to same period last year. This rebound in our topline was driven by a gradual return to a low covid environment which resulted in us operating at near peak utilization levels in India. Our PAT for the period was Rs. 39 crores compared to a loss of Rs. 57 crores in same penod last year. In addition to the phased ending of lockdowns, improvement in price of yarn market also supported the margin enhancement. We expect the price trend to sustain oa The Phase 1 of Oman plant consisting of 150,000 spindles and 3,500 rotors have been completed and is expected to fully contribute to the financial performance starting third quarter of this fiscal year. The strong demand for quality compact yarn coupled with sales offtake agreements with our customers will enable us to fully utilise the new capacities and enhance value for our stakeholders. On 12th July, we achieved another milestone in our growth journey and our shares were listed on the National Stock Exchange of India (NSE). We expect the listing to helo us broaden our investor base and share our growth journey with them.”
www.svpglobal.co.in
Q1 FY2022 Performance Discussion
e m o c n I
T
l a t o
Q1 FY20
Q1 FY21
Q1 FY22
Q2 FY21
Q3 FY21
17.6% e
A D T I B E
(2)
22.4% e
15.5% e
Q1 FY20
Q1 FY21
Q1 FY22
Q2 FY21
Q3 FY21
Q1 FY20
Q1 FY21
Q1 FY22
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
www.svpglobal.co.in
SVP GL@BAL
VENTURES LTD.
Improvement in utilization levels due gradual return to a low covid environment supported the topline growth
The improvement in margin was driven by improvement in price of yarn in international market also supported the margin enhancement
The improved price trend is expected to continue in the near to medium term due to prevailing anti China sentiments
Q1 FY2022 Performance Discussion
SVP GLOBAL
re | er
Rs. Crores
Total Income
Gross Profit
er
412
136
aed
100
23
Gross Margin (%)
32.9%
23.2%
EBITDA
EBITDA Margin (%)
EBIT
EBIT Margin (%)
PAT
PAT Margin (%)
91
22.2%
10
17.0%
39
9.5%
(2)
nm
(23)
nm
(57)
nm
ee)
ey
312.7%
486.9%
nm
nm
nm
1,422
420
29.6%
234
16.5%
150
10.6%
25
1.7%
ae 1,444
437
30.2%
267
18.5%
182
12.6%
51
3.5%
ee)
(1.5)%
(3.8)%
(12.2)%
(17.5)%
(51.1)%
www.svpglobal.co.in
Capital Structure Considerations
SVP GLOBAL
VENTURES LTD.
Oman Phase | fully funded on balance sheet and capacity will contribute to topline from Q3 FY22
Focus on high margin compact cotton business
Forward integration into garment manufacturing
Working capital optimization and utilization of free cash flow
Cash Flow from Operation (Rs. Crores)
85
Ld
FY20
FY21
Total Debt / Equity (x)
Capital inflow of Rs. 176.25 crores by Sep 2022 from equity warrants
2.2x
issued to Promoter Group in March 2021
1.9x
Monetize non-core assets at South Unit at Ramnad, Tamil Nadu. The
Board has established a Committee to evaluate strategic options
Potential fund raise via QIP
Mar-20
Mar-21
Fs
S (0 6
*
¢
¢
*
*
¢
www.svpglobal.co.in
Sohar (Oman) Phase II
SVP GLOBAL
VENTURES LTD.
Enhanced capacity coupled with focus on high margin products to drive profitability and cash generation
Compact Cotton Yarn
Garment Manufacturing
Capacity (Spindles)
Capacity (Rotors)
Project Cost ($ mn)
Expected Completion
eee
150,000
3,500
150
H1 FY23
2) >) _ ho = ”n _ = o® a = >) O
*
*
Construction work for Phase II has started
Progress in line with management expectations
¢
¢
*
*
Forward integration by expanding into garment manufacturing by setting up knitting units
The operation will be set-up in Oman using internal accruals
Expect the garment unit to be fully operational by end of FY2022
ete Focus on supplying to customers in Oman and other Cees
www.svpglobal.co.in
Diversified Customer Base
Orderbook of over Rs. 5,000 crores; equivalent to next 2-3 years revenue
SVP GL@BAL
VENTURES LTD.
Key Customers
INMAT=X 2%
fabrics factory
KOHINOOR MILLS
@ SAFARTEXTIL 7
TS en Re) che ee)
Sapphire
iN P
cS
;
PARAMOUNT TEXTILE
0 TRIDENTGROUP”
Sour
WELSPUN GROUP Leading Tomorrow Together
Be
DAEHO INDUSTRIES
NG Nile Linen Group
AG
oe imo Silver Line Group
Circular Knitting
Socks Knitting
Towel Weaving
Sheeting
Shirting
Weaving
www.svpglobal.co.in
Diversified customer with more than 5% of revenues
customer
base
with
no_
single
Longstanding relationships with majority of the customers
Orderbook of over Rs. 5,000 crores; equivalent to next 2-3 years revenue
retailers
Sales offtake agreement with existing customer ensures near peak capacity utilization
Approved supplier to IKEA, one of the largest global home accessories
opportunity to supply yarn to suppliers of IKEA
approved
provides
furniture
supplier
status
The
and
of
Strategically Located Manufacturing Facilities
SVP GLOBAL
VENTURES LTD.
Oman platform provides competitive advantages of strategic location, low cost of power and attractive capital
— e—
India
USA
Brazil
Pakistan
oe a Australia
A
wore
9
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Cd
”
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o
o o é é
9
vw
oo”
oo”
-"
Jhalawar, Rajasthan Spindles: 150,000 . Rotors: 2,400
i
Sohar, Oman Spindles: 150,000 Rotors: 3,500
Ceara
ar aw an 20
we
——""
9
Ramnad, Tamil Nadu Spindles: 98,000
me,
Pd
Americas Exports ¢ Brazil Chile * * Columbia Mexico «
EMEA Exports ¢ * * °
Belgium Portugal Spain Turkey
China
Asia Exports ¢ * Bangladesh Pakistan ¢ South Korea «
Spindles
150,000
150,000
98,000
398,000
Rotors
2,400
3,500
-
5,900
A International Offices
y& Corporate Office
9 Manufacturing Facilities
www.svpglobal.co.in
SVP Global Sustainability Practices
SVP GLOBAL
VENTURES LTD.
Global certification and memberships ensuring preferred vendor status with leading global textile manufacturers
Xr,
s
s s w n o P
e n O
, O o
L A
e o
&
% o
*“GoTs*
Global Organic Textile Standard
.
.
.
GOTS is a voluntary global standard for the entire post-harvest processing (including spinning, Knitting, weaving, dyeing and og 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
ws
“ag:
.
.
.
:
.
'
OCS is an international, voluntary standard that sets requirements a for third-party certification of certified organic input and chain of custody. The goal of the OCS is to increase organic agriculture
ie Organic Content Standard (OCS)
.
production
OEKO-TEX®
OEKO-TEX consists of 18 independent institutes in Europe and
“ee ae Japan. Together we are continuously developing test methods and
nes feet santo
OEKO-TEX
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
Fairtrade Textile Standard is one component of the greater
rairtrape BeoonerioN chains and related business practices. This comprehensive
—sC-irtrade Textile Programme to facilitate change in textile supply
Fairtrade Textile Standard
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
Global Recycle Standard (GRS)
‘sete’ ) BGI “ithe, www bettercotton.o'9_ Better Cotton Initiative (BCI)
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
BClis a global not-for-profit organisation and the largest cotton Sustainability programme in the world. BCI exists to make global Egtton production better for the people who produce it, better for the environment it grows in and better for the sector’s future
@ USCOTION |, grown cotton. It brings quantifiable and verifiable goals and
ESSUPIMA
US Cotton Trust Protocol sets standard for more sustainably
US Cotton Trust Protocol
measurement to the issue of responsibly grown cotton production and drives continuous improvement in key sustainability metrics
Supima
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
www.svpglobal.co.in
Jhalawar (India) Manufacturing Facility
SVP GLOBAL
VENTURES LTD.
Installed capacity of 150,000 spindles and 2,400 rotors with automated machinery, Al and IOT capabilities
¢
¢
¢
¢
*
*
¢
*«
Manufacturing facilities over an area of 60 acres
Wy
;
Equipped with the most modern technology from Blow Room to Winding
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)
Dedicated 132 KV power Line and 5.4 MW solar capacity
Interest subsidy of 9 - 11% p.a., under the Rajasthan Investment
Promotion Scheme / Technology Upgradation Fund Scheme
Zero Effluents and Zero smoke manufacturing facility
www.svpglobal.co.in
| 10
Sohar (Oman) Manufacturing Facility
Forward integration started by expanding into garment manufacturing; Phase | started
SVP GLOBAL
VENTURES LTD.
27 hectares land by Sohar Free Zone for a period of 25 years (renewable)
Installed capacity of 150,000 spindles and 3,500 rotors
Exclusive state of art infrastructure equipped with latest and most modern technology from Blow Room to Winding
Technology from Suesen (Switzerland), Schlafhorst (Germany), Loepfe Brothers (Switzerland), Savio Macchine (Italy) and LMW (India)
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
Fastest growing and fully developed port and freezone developments in Oman
100% % foreign ownership, free repatriation of capital and profits
25-year corporate tax holiday
Zero percent import or re-export duties
Logistic efficiencies through excellent
road,
port and air connectivity
Free Trade Agreements with countries like
eels] OM
Old (Nar a(e Ole yaN
Green Project with no smoke, effluent or wastage; safe and clean working environment
Low power (40% lower than India) and cost of debt (4%)
11
www.svpglobal.co.in
Investment Themes
SVP GLOBAL
VENTURES LTD.
| Manufacturing capacity of 400,000 spindles and 5,900 rotors spread across India and Oman. Top 5 manufacturer of compact cotton yarn in India
Sohar (Oman) is fastest growing port and freezone; allows 100% foreign ownership, free repatriation of capital and profits
Operations are built on lean manufacturing, with automated machinery with artificial intelligence and IOT capabilities
Among top 5% Indian Manufacturers with technology <5 years old; output of 153/154 grams / spindle (count 40), highest in industry
SVP GL@©BAL
VENTURES LTD.
All manufacturing facilities operating at near peak capacity and 50% of Oman facility expected to reach peak utilization by Q2 FY22
Plans to double Oman capacity by H1 FY23; sales offtake agreement with existing customers to drive utilization and growth
EBITDA margins up from 7.1% in FY17 to 16.5% in FY21, due to compact yarn transition; to further enhance margins
Deleverage balance sheet using proceeds from equity warrants, operating cash flow, working capital optimization and sale of non-core assets
Global certifications such as Global Organic Textile Standards, Organic Content Standard, OEKO-Tex. Approved supplier to IKEA
www.svpglobal.co.in
| 12
Disclaimer
SVP
GLOBAL
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to SVP Global Ventures Limited (“SVP Global” or the Company) future business developments and economic performance.
risks,
While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of differ materially from our expectations.
uncertainties and other unknown factors could cause actual developments and results to
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
SVP Global undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.
For further information, please contact
Major General O.P. Gulia (Retd.) Chief Executive Officer SVP Global
+91 22 4029 0011 gulia@pittie.com
Bijay Sharma / Ashok Negi
Churchgate Partners
+91 22 6169 5988 svpglobal@churchgatepartners.com
www.svpglobal.co.in
SVP GLOBAL
VENTURES LTD.
Cuffe Parade,
(CIN: L17290MH1982PLC026358)
Mumbai - 400 005, India
97 & 99 Maker Tower 'F’,
SVP Global Ventures Limited
www.svpglobal.co.in
Phone: +91 22 4029 0011
Email: contact@pittie.com