Svp Global Textiles Limited · NSE:SVPGLOB
Svp Global Textiles — SVP Global Ventures — Investor Presentation (September 2021)
35 slides from Svp Global Textiles's investor presentation, September 2021
Slide 1: The Fastest Growing Multinational Cotton Yarn Manufacturer
The Fastest Growing Multinational Cotton Yarn Manufacturer Investor Presentation – September 2021
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by SVP Global Ventures Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 3: Industry Leading Parameters
Industry Leading Parameters State of Art machinery using Among the Lowest Capital Cost in the Industry latest technology and artificial intelligence Wider market access Highest Operational through diversified Efficiency operation Strong order book with Lowest Borrowing Cost Sustainable high margins
Slide 4: Fastest growing multinational in Cotton Yarn manufacturing
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 Expansion in end user segment
Slide 5: SVP at a Glance
SVP at a Glance 200 years of Combined Legacy of 100 years in experience of Promoters the & Management Textile business Installed capacity of Current direct employment to more 400,000 Spindles & 5,900 than 4000 people in Rotors across India & Oman India and Oman Only 5% of Indian manufacturers Green
Slide 6: Legacy of over 100 years in Textile
Legacy of over 100 years in Textile Commenced production of 2,400 Rotor & additional 50,000 Spindles capacity Acquisitionn of for Compact yarn at Inauguration of Coimbatore & INR 10000 mn+ Jhalawar to become the 1,50,000 Spindles Ramnad Unit in Tamil in Revenues largest Compact yarn unit at Oman Nad
Slide 7: Experienced Board of Directors
Experienced Board of Directors Mr. Chirag Pittie : Whole Time Director Mr. Praveen Shelley : Non-Executive Director • Qualifications: Holds BSBA degree in Finance and Management from Boston University, USA • Qualifications: He is Certified Administrator from Michigan, USA • Experience: Has more than
Slide 8: Strong Management Team
Strong Management Team Major General OP Gulia CA . S . Ram Santhanam Mr. Chirag Pittie Mr Praveen Shelley SM, VSM(retd) Whole Time Director Chairman CEO Deputy. CEO Mr. Diwakara Rao Mr. Sanjay Sinha Mr. Narendra Jain Mr. Prashant Pillai Chief Financial Officer President - Finance Vice President - Ma
Slide 9: Industry Bound to Grow
Industry Bound to Grow Indian Apparel Market* Leading Yarn Exporters* Leading Home Textile Exporters* 21% 14% 12% 37% 11% 8% 135 5.5 19.2 10% 3.7 78 3.2 55 5.8 4.1 FY1 FY2 FY21- FY25 Chin India Vietnam Chin India Vietnam 9 0 24 E a a Indian Yarn Export Market* • We anticipate that the Textile manufa
Slide 10: Indian Yarn Industry
Indian Yarn Industry Production of Yarn Production Yarn Millions Square Meters • Production of yarn grew to 5,890 Millions Kgs million kgs in FY19 from 5,665 5665 5659 5680 5890 6829 6818 6867 7050 6189 million kgs in FY16 4762 4138 4055 4064 4208 3332 • Cotton yarn, a major segment in 1431 FY20^, a
Slide 11: State of art infrastructure at Rajasthan
State of art infrastructure at Rajasthan State-of-the-art-infrastructure: Installed capacity of 1,50,000 spindles and 2,400 rotors (60 acres land area) commissioned in a record time of 9 months in Rajasthan Jhalawar – Rajasthan 5 km from city Proximity to cotton & centre, 12 km from yarn hubs in Eas
Slide 12: Geographical Footprint
Geographical Footprint Jhalawar, Rajasthan: Spindles: 1,50,000 Rotors: 2,400 Jhalawar, Rajasthan USA Oman Mumbai Mumbai Sohar, Oman Spindles: 1,50,000 Rotors: 3,500 Ramnad, Tamil Nadu Ramnad, Tamil Nadu: Spindles: 98,000 International Offices & proposed Manufacturing Corporate Manufacturing units Of
Slide 13: Diversified end usage
Diversified end usage Circular Knitting Socks Sweaters (Weft Knits) Knitting Denim Yarn Dyeing Sheeting Fabrics Weaving Towel Weaving & Carpet Shirting (Base and Pile) weaving SVP Global Ventures Limited 13
Slide 14: High Entry Barriers & Competitive Advantage
High Entry Barriers & Competitive Advantage Large capacity build up over last 5 years in India and Oman. Operating at more than 95% capacity utilization Sustainable EBIDTA Margins with use of high end technology which is used by less than 5% of industry in India High Barriers to Entry Global presenc
Slide 15: 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
Slide 16: Global Certifications, Registrations & Approvals
Global Certifications, Registrations & Approvals Global Organic Textile Standards (GOTS) Comprising of 4 reputed member organization – OTA (USA), IVN (Germany), Soil Association (UK) and JOCA (Japan) Organic Content Standard (OCS) OCS applies to any non-food product containing 95-100 percent organic
Slide 17: Incentives & Subsidies
Incentives & Subsidies Company enjoys incentives received from the Rajasthan Government including VAT benefits Power tariff reductions which along with premium products, lower wastage, and higher operating efficiency significantly boosts the profitability. Unit in Jhalawar, Rajasthan benefit
Slide 18: CSR Commitment
CSR Commitment Solar Power - Installed 5.4-Megawatt solar power projects to curb release of CO2. Estimated Power Generation: 86,09,328 Units Per Year. Estimated Reduction in Co2 Emission: 7,317 Ton Non-Hazardous Orange category plant declared by pollution department Provided jobs to 250 local
Slide 19: Growth Journey
Growth Journey SVP Global Ventures Limited One of the Largest Indian manufacturer of Compact Cotton Yarn in the World with operations in India and Oman 1.0 2.0 3.0 4.0 5.0 From Trading Change in Increasing the Expansion of Business to the product Global reach De-leveraging manufacturing Manufacturin
Slide 20: 1.0 Transformation from trading to manufacturing business
1.0 Transformation from trading to manufacturing business “Continued focus towards improving profitability with each expansion” Legacy of Expansion of Largest Experience Forays into Manufacturing 100 years+ manufacturer d in Yarn Manufacturing Capacities into textile Expansion of of Compact Trading
Slide 21: 2.0 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 Manufacturing Yarn ~4,00,000 spindles ~5,900 rotor
Slide 22: 3.0 Change in the Product Mix – Foray into Compact Yarn
3.0 Change in the Product Mix – Foray into Compact Yarn Compact & Specialised Yarns Compact Yarn advantage Foray into • Organic Cotton Yarn Smoother yarn with higher lustre Compact & • Fair trade Certified Cotton Yarn Specialised Yarn • Long Staple Cotton 40-50% improvement in abrasion fastness Yarn
Slide 23: 3.0 Change in the Product Mix – Leading to Margin Expansion
3.0 Change in the Product Mix – Leading to Margin Expansion Revenue Mix (%) Gross Margin (%) Traditional yarn ~1950 bps Compact yarn 30.2% 29.6% 27.3% 15.2% 20% 16% 10.1% FY1 FY1 FY1 FY2 FY2 FY16 FY21 7 8 9 0 1 EBITDA Margin (%) 80% 84% ~940 bps 18.5% 17.3% 16.5% 10.8% 7.1% Spinning mills with exclu
Slide 24: 4.0: Expanding Reach – Strategic decision to expand Exports
4.0: Expanding Reach – Strategic decision to expand Exports SVP has established a new $150-million plant in Sohar Freezone to manufacture a wide range of cotton yarn First major Cotton Spinning Unit in GCC Region to promote development of Particulars Capacities Textile cluster in Oman. Technology
Slide 25: 4.0: SVP Oman at Sohar Freezone
4.0: SVP Oman at Sohar Freezone 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 Expanding Footprint Deep sea port with 25m drafts, port city with the 2nd 01 at Oman 07 located
Slide 26: 5.0 De-leveraging Balance sheet
5.0 De-leveraging Balance sheet Hive off Non Core Expand into Reduce Debt Garmenting Assets Gradually hive off the non-core assets Monetise the non-core asset and re- Plans of entering into garmenting with old technology and invest into invest into high return accretive sector and focus on hig
Slide 27: Financial Performance
Financial Performance SVP Global Ventures Limited 27
Slide 28: Q4 & FY21 Highlights
Q4 & FY21 Highlights Hive off South Unit at Ramnad, Tamil Nadu Interim Dividend of 5% The Board has mounted an opinion to hive off South unit for which the Board has constituted the Committee to foresee various avenues & methodology in the best interest of the Company to conclude the hiving off
Slide 29: Quarter on Quarter Performance
Quarter on Quarter Performance Total Income EBIDTA PAT 571 94 91 85 38 39 33 412 11 372 379 58 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 -57 100 -2 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 -2 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Gross Profit (%) EBIDTA Margins (%) PAT Margins (%) 22.4% 22.2% 8.8% 6.7% 9.5% 2.9% 35
Slide 30: FY21 Financial Highlights
FY21 Financial Highlights Total Income (Rs. In Crs) EBIDTA (Rs. In Crs) PAT (Rs. In Crs) 1,443.7 1,422.4 266.8 51.1 234.2 24.9 FY20 FY21 FY20 FY21 FY20 FY21 Gross Margin (%) EBIDTA Margin (%) PAT Margin (%) 30.2% 29.6% 18.5% 3.5% 16.5% 1.7% FY20 FY21 FY20 FY21 FY20 FY2 1 SVP Global Ventures Limited
Slide 31: Q1 FY22 & FY21 Consolidated Profit & Loss Statement
Q1 FY 22 & FY21 Consolidated Profit & Loss Statement Q1 12M (Rs. Crores) FY22 FY21 Y-o-Y Change (%) FY21 FY20 Y-o-Y Change (%) Total Income 412 100 312.7% 1,422 1,444 (1.5)% Gross Profit 136 23 486.9% 420 437 (3.8)% Gross Margin (%) 32.9% 23.2% 29.6% 30.2% EBITDA 91 (2) nm 234 267 (12.2)% EBITDA Mar
Slide 32: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Total Income EBIDTA PAT Exit from low margin business leading to revenue rationalisation 2543 274 267 68 249 234 1922 51 46 1434 1444 1422 136 25 18 Focus on high compact yarn FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Gro
Slide 33: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. In Crs FY21 FY20 FY19 FY18 FY17 Total Income 1422.4 1443.7 1434.0 2543.2 1922.1 Cost of Goods Sold 1002.1 1007.0 1042.2 2157.9 1727.9 Gross Profit 420.3 436.7 391.8 385.3 194.3 Gross Margin (%) 29.6% 30.2% 27.3% 15.2% 10.1% Employee Ex
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (Rs. In Crs) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Particulars (Rs. In Crs) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Non-Current Assets 2,344.0 2,166.0 1,288.9 1,242.7 1,235.3 Equity 1,248.2 1,075.6 625.9 579.3 513.4 Property, plant and equipment 940.7 1,104.
Slide 35: Contact Us
Contact Us SVP Global Ventures Limited CIN: L17290MH1982PLC026358 Mr. O.P.Gulia– CEO gulia@pittie.com SVP Global Ventures Limited
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