Svp Global Textiles Limited · NSE:SVPGLOB
Svp Global Textiles — Investor Presentation (March 2022)
37 slides from Svp Global Textiles's investor presentation, Mar 24, 2022
Slide 1: SVP Global Textiles Limited
SVP GLOBAL TEXTILES LIMITED SVP (Formerly Known as SVP Global Ventures Ltd.) 97, Maker Tower ‘F’, Cuffe Parade, Mumbai — 400 005. GLOBAL Tel. : 4029 0011 Fax : 4029 0033 Email: contact@pittie.com CIN: L17290MH1982PLC026358 TEXTILES LTD. Website: www.svpglobal.co.in Date : 24 March, 2022 To, The BSE
Slide 2: Investor Presentation March 2022
INVESTOR PRESENTATION March 2022
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: SVP at a Glance
SVP at a Glance 200 years of Combined experience of Legacy of 100 years in the Promoters & Management Textile business Strong order book of INR 50,000 Mn. India’s one of the Largest manufacturer of Compact cotton yarn with an installed 20-30% revenue growth expected after capacity of 400,000 Spindle
Slide 5: Company Overview
Company Overview Operating income (INR Mn) • 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 14,098 14,057 higher margin compact cotton yarn, blended yarn and open-end yarn. • Profe
Slide 6: Industry Leading Parameters
Industry Leading Parameters Among the lowest capital cost in State of Art machinery using the Industry latest technology and artificial intelligence Highest Operational Efficiency Wider market access through diversified operation Strong order book with Sustainable Subsidized power cost leading to be
Slide 7: Fastest growing multinational in Cotton Yarn manufacturing
Fastest growing multinational in Cotton Yarn manufacturing Margin expansion Highest quality value added Expansion in end user Manufacturing of high margin compact cotton yarn segment compact yarn leading to margin Shifting of manufacturing expansion of ~950 bps between Multiple usage & expansion of
Slide 8: Key Milestones
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. co. to invest Rs. 100 cr to set up Acquisition of Commenced Amongst the Inauguration of technical Acquisition of
Slide 9: Board of Directors
Board of Directors Mr. Chirag Pittie : Whole Time Director Qualifications: Holds BSBA degree in Finance and Management from Boston Mr. Praveen Shelley : Non-Executive Director University, USA Qualifications: He is Certified Administrator from Michigan, USA Experience: Has more than 16 years of exper
Slide 10: Key Management Personnel
Key Management Personnel Major General OP Gulia SM, VSM (retd) Mr. Prashant Pillai CEO Vice President – Marketing 37 years meritorious career in Indian Army, decorated More than 20 years experience with companies like Gujarat with gallantry award. He possesses strong ability in Ambuja Exports Limite
Slide 11: Geographical Footprint
Geographical Footprint Raw Material Sourcing Jhalawar, Rajasthan: India USA Brazil Pakistan Turkey New Zealand Spindles: 1,50,000 Rotors: 2,400 Jhalawar USA Oman Mumbai Mumbai Tamil Nadu: Spindles: 98,000 Americas Exports EMEA Exports Asia Exports Sohar, Oman: • Brazil • Belgium • China Spindles: 1,
Slide 12: Customer Base and Yarn end markets
Customer Base and Yarn end markets • Diversified customer base with no single customer with more than 5% of revenues End Markets • Longstanding relationships of over 10 years with 40% of the customers • Sales offtake agreement with existing customer ensures near peak capacity utilization • Approved
Slide 13: SVP Global Sustainability Practices
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 OCS is an international, voluntary standard that sets requirements for (inclu
Slide 14: Business Overview
BUSINESS OVERVIEW 13
Slide 15: Jhalawar (India) Manufacturing Facility
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 i
Slide 16: Sohar (Oman) Manufacturing Facility
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. Prom
Slide 17: Incentives & Subsidies
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 P
Slide 18: Technological Edge
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
Slide 19: Strategic Overview
STRATEGIC OVERVIEW 18
Slide 20: Business Strategy
Business Strategy Change in the product mix (Traditional to Compact yarn) Expansion of Increasing the Global reach manufacturing capacities (Manufacturing base at Oman) From Trading Business to De-leveraging Manufacturing Business Balance sheet 19
Slide 21: Transformation from trading to manufacturing business
1.0 Transformation from trading to manufacturing business “Continued focus towards improving profitability with each expansion” Deep Understanding Leverages its Experience Expansion of Legacy of 100 of & enters manufacturing Manufacturing Experienced in Largest years+ into Yarn Market Forays into Ca
Slide 22: Expansion of Manufacturing capacities
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 50,000 100,000 31,000 7,000 51,000 9,000 Palani Coimbatore Ramnad I Ramnad II Jhalawar I Jhalawar II&III Oman Total ~4,00,000 spindles ~5,900 rotors Manufacturing Yar
Slide 23: Change in the Product Mix – Foray into Compact Yarn
3.0 Change in the Product Mix – Foray into Compact Yarn Foray into Compact & Compact & Specialised Yarns Gross Margin Specialised Yarn • Organic Cotton Yarn • Fair trade Certified Cotton Yarn Compact Yarn advantage Traditional Yarn • Long Staple Cotton • Single Ring Yarn 30.2% 29.6% Yarns/Pima Cotto
Slide 24: Expanding Reach – Strategic decision to expand Exports
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 Deep sea port with 25m drafts, Sohar is Oman’s major port 01 Salient features of 07 locat
Slide 25: De-leveraging Balance sheet
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 Release of Working Capital & Monetization of Old Assets ▪ Add new customers and expan
Slide 26: Strategic Future Outlook
Strategic Future Outlook • One of leadingmanufacturerof compactcottonyarnwithaggregatecapacityof 400,000 Spindles and5,900 Rotors. • Further, 150,000 Spindles and3,500 Rotors capacityproposed inOman. GrowthReady • Stateofthearttextileunits usinglatesttechnologyforbetteroperational efficiencyand thro
Slide 27: High Entry Barriers & Competitive Advantage
High Entry Barriers & Competitive Advantage High Barriers to Entry 1 + 5 Large capacity build up over Machine combination and last 5 years in India and Competitive Advantages efficient utilization has Oman. resulted in higher Spindles Yarn output of 153-154for 40 count yarn, relative to lower output
Slide 28: Industry Overview
Industry Overview 27
Slide 29: Indian Yarn Industry
Indian Yarn Industry • Production of yarn grew to 5,890 million kgs in FY19 from 5,665 Cotton Yarn Production in India (Mn kgs) Segment-wise Yarn Production in FY20 (Mn Square Meter) millionkgsin FY16. 5,890 6,829 6,818 6,867 7,050 • Cotton yarn, a major segment in FY20^, accounted for more than 5,6
Slide 30: Global Yarn Industry
Global Yarn Industry Global capacity; 250 MillionSpindles Global cotton production 26 Million Tonne Global YarnProduction 39 Million Tonne SALES SALES India 5 Mn, RoW 81 Mn, India 49 Mn, India 7 Mn, RoW 13 Mn, 13% 32% 20% 20% 36% RoW 13 Mn, 33% China 21 Mn, China 120 Mn, 54% China 16 Mn, 48% 44% • T
Slide 31: Financial Overview
Financial Overview 30
Slide 32: FY21 Financial Highlights
FY21 Financial Highlights Total Operating Income (INR Mn) EBIDTA & EBITDA Margin (in %) PAT &PAT Margin (in % ) 2,732 14,057 50.0% 14,098 2,328 1,213 90.0% 2,174 12,234 511 40.0% 22.3% 249 16.5% 15.5% 0.0% 3.6% 1.8% 9.9% -10.0% FY20 FY21 9M-FY22 FY20 FY21 9M-FY22 FY20 FY21 9M-FY22 Exit from low marg
Slide 33: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance INCOME STATEMENT (INR Mn) FY19 FY20 FY21 9M-FY22 Operating Income 13,486 13,555 12,625 11,930 Other Operating Income 441 543 1,432 304 Total Operating Income 13,927 14,098 14,057 12,234 Operating Expenses 11,856 11,770 11,883 9,502 EBITDA 2,071 2,328 2,1
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY20 FY21 H1-FY22 Particulars (INR Mn) FY20 FY21 H1-FY22 Non-Current Assets 21,660 23,440 23,784 Equity 10,756 12,482 13,121 Property, plant and equipment 11,042 9,407 8,977 Equity share capital 127 127 127 Capital work-in-progress 6,658 7,9
Slide 35: Capital Market Data
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) Shareholding Pattern (31st December, 2021) Current Market Price (INR) 75.7 Non-Inst
Slide 36: Disclaimer
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 d
Slide 37: Thank You
Thank You
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