Svp Global Textiles Limited · NSE:SVPGLOB
Svp Global Textiles — SVP Global Ventures — FY2021 Earnings Presentation
36 slides from Svp Global Textiles's earnings presentation, Jul 14, 2021
Slide 1: Regulation 30 intimation letter to NSE
SVP GLOBAL VENTURES LIMITED SY = 97, Maker Tower "F", Cuffe Parade, Mumbai - 400 005. G L @OB. AL Tel.: 02240290011 Fax: 022 40290033 armas Cre Email: contact @pittie.com . CIN: L17290MH1982PLC026358_ Website : www.svpglobal.co.in Date: July 14, 2021 To, The Listing Department The National Stock Exc
Slide 2: SVP Global Ventures Limited Investor Presentation - June 2021
J. VENTURES LTD. SVP Global Ventures Limited Investor Presentation - June 2021
Slide 3: Safe Harbor
Safe Harbor SVP GL@BAL VENTURES LTD. 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 purcha
Slide 4: Industry Leading Parameters
Industry Leading Parameters SVP GLOBAL State of Art machinery using Among the Lowest Capital eo latest technology and Cost in the Industry artificial intelligence Wider market access Highest Operational Efficienc through diversified * SVP operation GLOBAL Strong order book with Sustainable high marg
Slide 5: Fastest growing multinational in Cotton Yarn manufacturing
Fastest growing multinational in Cotton Yarn manufacturing SVP GL@BAL VENTURES LTD. 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 Expansion in end user segment Shifting of manufa
Slide 6: SVP at a Glance
SVP at a Glance SVP GLOBAL WENTURES LTD. 200 years of Combined Legacy of 100 years in the experience of Promoters & Textile business Management 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 In
Slide 7: Legacy of over 100 years in Textile
Legacy of over 100 years in Textile SVP GLOBAL VENTURES LTD. Commenced production of 2,400 Rotor & additional 50,000 Spindles capacity for Acquisitionn of Compact yarn at Jhalawar to Inauguration of Coimbatore & Ramnad INR 10000 mn+ in become the largest Compact 1,50,000 Spindles unit Unit in Tamil
Slide 8: Experienced Board of Directors
Experienced Board of Directors SVP GLOBAL VENTURES LTD. 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 Experi
Slide 9: Strong Management Team
Strong Management Team SVP GLOBAL VENTURES LTD. Major General OP Gulia SM, Mr. Chirag Pittie Mr Praveen Shelley Mr. Diwakara Rao VSM(retd) Whole Time Director Chairman President Chief Financial Officer Mr. Prakash Saraogi Mr. Narendra Jain Mr. Prashant Pillai Mr. V.K. Chaudhary Ex. Vice President -
Slide 10: Industry Bound to Grow
Industry Bound to Grow SVP GL@BAL VENTURES LTD. Indian Apparel Market* Leading Yarn Exporters* Leading Home Textile Exporters* 21% 14% 12% 37% 11% 8% 5.5 19.2 3.7 78 3.2 55 7 5.8 La 4.1 FY19 FY20 FY21-24 FY25E China India Vietnam China India Vietnam Indian Yarn Export Market* ¢ We anticipate that th
Slide 11: Indian Yarn Industry
Indian Yarn Industry SVP GLOBAL VENTURES LTD. Production of Yarn Yarn Production Millions Kgs Millions Square Meters Production of yarn grew to 5,890 million kgs in FY19 from 5,665 5665 5659 5680 5890 6829 6818 6867 7050 6189 million kgs in FY16 4762 4138 4055 4208 3332 Cotton yarn, a major segment
Slide 12: State of art infrastructure at Rajasthan
State of art infrastructure at Rajasthan SVP GLOBAL WENTURES LTD. State-of-the-art-infrastructure: Installed capacity of 1,50,000 spindles and 2,400 rotors commissioned Jhalawar - Rajasthan (60 acres land area) in arecord time of 9 months in Rajasthan 5 km from city centre, Proximity to cotton & 12
Slide 13: Geographical Footprint
Geographical Footprint SVP GLOBAL Jhalawar, Rajasthan: Spindles: 1,50,000 Rotors: 2,400 a+ savant Ning a Rajasthan =e Sohar, Oman Spindles: 1,50,000 Rotors: 3,500 Ramnad, Tamil Nadu Ramnad, Tamil Nadu: Spindles: 98,000 A International Offices & proposed Manufacturing units + Corporate Office MS Manu
Slide 14: Diversified end usage
Diversified end usage SVP GLOBAL WENTURES LTD. Circular Knitting Socks Knitting Sweaters (Weft Knits) OS Ss Denim Fabrics Yarn Dyeing Sheeting Towel Weaving Weaving Shirting (Base and Pile) SVP Global Ventures Limited 13
Slide 15: High Entry Barriers & Competitive Advantage
. 7 SVP High Entry Barriers & Competitive Advantage GL@BAL VENTURES LTD. 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 ebrdiw s
Slide 16: Technological Edge
Technological Edge SVP GLOBAL VENTURES LTD. 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 technologi
Slide 17: Global Certifications, Registrations & Approvals
meas SVP Global Certifications, Registrations & Approvals GLOBAL VENTURES LTD. —e Global Organic Textile Standards (GOTS) SVP Comprising of4 reputed member organization - OTA (USA), IVN (Germany), Soil Association (UK) and JOCA (Japan) GLOBAL VENTURES LTD. Organic Content Standard (OCS) OCS applies
Slide 18: Incentives & Subsidies
Incentives & Subsidies SVP GLOBAL ¥ 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, Rajas
Slide 19: CSR Commitment
CSR Commitment SVP GLOBAL Solar Power - Installed 5.4-Megawatt solar power projects to curb release of CO,. 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 l
Slide 20: Growth Journey
Growth Journey SVP GLOBAL WENTURES LTD. 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 5.0 From Trading ET Change in the Increasing the Global Business to a product mix reach De-leveraging searcDoLobecCouabbmbotsd Manufacturin
Slide 21: 1.0 Transformation from trading to manufacturing business
1.0 Transformation from trading to manufacturing business SVP GLOBAL “Continued focus towards improving profitability with each expansion” or dersta a, nding oF", *., yarn Ma FRKezt scons q * <e“et ener its Experi,” Ce axagesmanufact,” *, ee ly, Yo *% Legacy of Expansion of Largest Experienced Foray
Slide 22: 2.0 Expansion of Manufacturing capacities
vos SVP 2.0 Expansion of Manufacturing capacities GL@BAL Capacity Built-up over the years 2007-2008 2010-2013 2016-2017 2019 2020 398,000 100,000 | 31,000 ~— 51,000 7,000 9,000 Palani Coimbatore Ramnad | Ramnad II Jhalawar I Jhalawar II&III Oman Total Manufacturing Yarn ~4,00,000 spindles ~5,900 rot
Slide 23: 3.0 Change in the Product Mix - Foray into Compact Yarn
3.0 Change in the Product Mix - Foray into Compact Yarn SVP GLO BAL VENTURES LTD. Compact & Specialised Yarns Compact Yarn advantage Organic Cotton Yarn Foray into Smoother yarn with higher lustre Compact & Fair trade Certified Cotton Yarn Specialised Yarn Long Staple Cotton 40-50% improvement in ab
Slide 24: 3.0 Change in the Product Mix - Leading to Margin Expansion
3.0 Change in the Product Mix - Leading to Margin Expansion GLOBAL WENTURES LTD. Revenue Mix (%) Gross Margin (%) a | Traditional yarn ~1950 bps || Compact yarn FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) Spinning mills with exclusive Automation & Technology FY17 FY18 FY19 FY20 FY21 SVP Global Ventur
Slide 25: 4.0: Expanding Reach - Strategic decision to expand Exports
4.0: Expanding Reach - Strategic decision to expand Exports SVP GLOBAL VENTURES LTD. SVP has established anew $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 Textile cluster in Oman. Technology f
Slide 26: 4.0: SVP Oman at Sohar Freezone
4.0: SVP Oman at Sohar Freezone SVP GLOBAL VENTURES LTD. 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 SVP GLOBAL Sohar is Oman’s major port Expanding Footprint P 9 P Deep sea port with 25m draft
Slide 27: 5.0 De-leveraging Balance sheet
5.0 De-leveraging Balance sheet SVP GLOBAL VENTURES LTD. % = Hive off Non-Core Expand into Reduce Debt Assets Garmenting 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
Slide 28: Financial Performance
"Financial Performance SVP Global Ventures Limited
Slide 29: Q4 & FY21 Highlights
Q4 & FY21 Highlights SVP GLOBAL Y 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
Slide 30: Improving Quarter on Quarter Performance
Improving Quarter on Quarter Performance SVP GL@BAL WENTURES LTD. Total Income EBIDTA PAT . . 94 . 38 | 571 85 33 66} 58 x1 372 379 11 : 100 7 i 8 » ol 2 37 Q4FY20 | QUFY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 | QIFY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 | QIFY21 Q2FY21 Q3FY21 Q4FY21 Gross Profit (%) EBIDTA Margins
Slide 31: FY21 Financial Highlights
FY21 Financial Highlights SVP GL© BAL WENTURES LTD. Total Income (Rs. In Crs) EBIDTA (Rs. In Crs) PAT (Rs. In Crs) 1,443.7 1,422.4 266.8 234.2 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 FY21 SVP Global Ve
Slide 32: Q4 & FY21 Consolidated Profit & Loss Statement
. . SVP BAL Q4 & FY21 Consolidated Profit & Loss Statement GLO VENTURES LTD. Particulars (Rs. In Crs Q4FY21 Q4FY20 : Total Income : 571.1 : 321.3 78% 379.2 : 51% : 1422.4 : 1443.7 -1% "costofGoods Sold seestneeototntnetstnessiatstnetnesinetatneais | — : “ — | seeetntn “3 stesunetstntnesntatnenetntst
Slide 33: Historical Consolidated Financial Performance
. SVP Historical Consolidated Financial Performance GLOBAL WENTURES LTD. Total Income EBIDTA PAT Exit from low margin business leading to revenue rationalisation 2543 274 267 68 1922 = = AG 51 of 1434 1444 1422 136 25 . 18 Focus on high compact FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 i FY1
Slide 34: Historical Consolidated Profit & Loss Statement
. . SVP Historical Consolidated Profit & Loss Statement GLOBAL VENTURES LTD. Particulars (Rs. In Crs FY21 FY20 FY19 FY18 FY17 Total Income 1422.4 1443.7 1434.0 2543.2 : 1922.1 "Costot Goods Sold seeotntsinentnetotstntnetstnesstatseatntssnestnetstststnestnessuatineiatsesintathenannsnni oo ee en festn
Slide 35: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet SVP GLOBAL 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 (1,248.2, 1,075.6 625.9 : Property, plant and equipment Equity share
Slide 36: Contact Us
Contact Us Company Investor Relations Partners SVP GL@BAL VENTURES LTD. © orient capital SVP Global Ventures Limited Orient Capital (a division of Link Group) CIN: L17290MH1982PLC026358 Mr. Prakash Saraogi - Executive Vice President Mr. Sagar Shroff: +91 98205 19303 prakash@pittie.com sagar.shroff@l