Svp Global Textiles Limited · NSE:SVPGLOB
Svp Global Textiles — SVP Global Ventures — Investor Presentation (January 2021)
31 slides from Svp Global Textiles's investor presentation, January 2021
Slide 1: SVP Global Ventures Limited Investor Presentation January 2021
SVP Global Ventures Limited Investor Presentation – January 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: 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 4: SVP at a Glance
SVP at a Glance 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 & than 4000 people in 5,900 Rotors India and Oman across India & Oman Only 2% of global manufacturers Green
Slide 5: 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 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 Nadu Revenues yarn player
Slide 6: 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 7: Strong Management Team
Strong Management Team 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 - Finance Vice President -
Slide 8: Jhalawar – Rajasthan
State of art infrastructure at Rajasthan State-of-the-art-infrastructure: Jhalawar – Rajasthan Installed capacity of 1,50,000 spindles and 2,400 rotors commissioned (60 acres land area) in a record time of 9 months in Rajasthan 5 km from city centre, Proximity to cotton & 12 km from Jhalawar yarn hu
Slide 9: Geographical Footprint
Geographical Footprint Jhalawar, Rajasthan: Lithuania Spindles: 1,50,000 Rotors: 2,400 Jhalawar, Rajasthan USA Oman Mumbai Mumbai Sohar, Oman*: Spindles: 3,00,000 Rotors: 7,000 Ramnad, Tamil Nadu Ramnad, Tamil Nadu: Spindles: 98,000 International Offices & proposed Manufacturing units Corporate Offi
Slide 10: Diversified end usage
Diversified end usage Circular Knitting Socks Knitting Sweaters (Weft Knits) Denim Fabrics Yarn Dyeing Sheeting Towel Weaving Weaving Shirting (Base and Pile) SVP Global Ventures Limited 10
Slide 11: Technological Edge
Technological Edge India has around 50 million Spindles capacity out of which around 98% 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 12: 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 13: 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. Capacity Subsidy 1,00,00 Spindles 11%
Slide 14: 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 15: Growth Journey
Growth Journey Vision to become a world leading fully integrated Textile Company manufacturing yarn, fabric and end user garments 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 the Increasing the
Slide 16: 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 Experienced Forays into Manufacturing Capacities 100 years+ manufacturer in Yarn Manufacturing into textile Expansion of of Compact Trading b
Slide 17: 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 3,98,000 1,50,000 50,000 1,00,000 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 18: 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 19: 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 ~1970 bps Compact yarn 25.7% 22.7% 13.3% 20% 9.1% 25% 6.0% FY16 FY17 FY18 FY19 FY20 FY16 FY20 EBITDA Margin* (%) 75% 80% ~950bps 13.2% 12.1% 8.9% 6.1% Spinning mills with exclusive Automatio
Slide 20: 4.0: Expanding Reach – Strategic decision to expand Exports
4.0: Expanding Reach – Strategic decision to expand Exports SVP is establishing a new $300-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 Particulars Phase 1 Phase 2 cluster in Oman. Techno
Slide 21: 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 port Expanding Footprint Deep sea port with 25m drafts, city with the 2nd largest 01 at Oman 07
Slide 22: 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 23: Financial Performance
Financial Performance SVP Global Ventures Limited 23
Slide 24: Q3 FY21 Operational & Other Highlights
Q3 FY21 Operational & Other Highlights Preferential Issue of Warrants Convertible in Equity Revenue mix between Shares of Rs. 235 crs by Promoter for business expansion Traditional & Compact Yarn Sr. No Particulars Details Warrants convertible into equivalent no. of equity 1 Type of Securities share
Slide 25: Q3 FY21 Financial Highlights
Q3 FY21 Financial Highlights Revenue (Rs. In Crs) EBIDTA* (Rs. In Crs) PAT (Rs. In Crs) -4% 55% 35% 385.9 370.6 76.2 33.3 24.7 49.3 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Gross Margin (%) EBIDTA Margin* (%) PAT Margin (%) 940 bps 780 bps 260 bps 34.0% 20.6% 9.0% 24.6% 6.4% 12.8% Q3FY20 Q3FY21 Q3F
Slide 26: Q3 & 9MFY21 Consolidated Profit & Loss Statement
Q3 & 9MFY21 Consolidated Profit & Loss Statement Particulars (Rs. In Crs Q3FY21 Q3FY20 Y-o-Y Q2FY21 Q-o-Q 9MFY21 9MFY20 Y-o-Y Revenue from Operations 370.6 385.9 -4% 364.0 2% 826.4 1,059.2 -22% Cost of Goods Sold 244.7 291.2 275.3 596.6 792.7 Gross Profit 125.9 94.8 33% 88.7 42% 229.7 266.6 -67% Gro
Slide 27: Management Comment
Management Comment Commenting on the results and performance for Q3 & 9MFY21, Major General O. P. Gulia – President for SVP Global Ventures Limited said: “We are pleased to report positive results for this quarter and are optimistic of growth for the coming quarter and next financial year. Strong de
Slide 28: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue EBIDTA* PAT Exit from low margin business leading to revenue rationalisation 2490 221 +10% 68 +11% 1902 179 163 51 46 1349 1356 116 18 Focus on high compact yarn FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Gross Margin (%) EBIDTA
Slide 29: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. In Crs 9MFY21 FY20 FY19 FY18 FY17 Revenue from Operations 826.4 1,355.5 1,348.6 2,490.3 1,901.7 Cost of Goods Sold 596.6 1,007.0 1,042.2 2,157.9 1,727.9 Gross Profit 229.7 348.5 306.4 332.4 173.8 Gross Margin (%) 27.8% 25.7% 22.6% 24.5
Slide 30: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (Rs. In Crs Sep-20 Mar-20 Mar-19 Mar-18 Mar-17 Particulars (Rs. In Crs Sep-20 Mar-20 Mar-19 Mar-18 Mar-17 Non-Current Assets 2,154.7 2,166.0 1,288.9 1,242.7 1,235.3 Equity 1,061.7 1,075.6 625.9 579.3 513.4 Property, plant and equipment 1,053.3 1,104.
Slide 31: Contact Us
Contact Us Company Investor Relations Partners Orient Capital SVP Global Ventures Limited (a division of Link Group) CIN: L17290MH1982PLC026358 Mr. Sagar Shroff: +91 98205 19303 sagar.shroff@linkintime.co.in Mr. Prakash Saraogi – Executive Vice President prakash@pittie.com Ms. Neha Shroff: +91 77380
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