The slowdown in emerging economies is due to increase of labour cost in China and plummeting oil prices.
SVP Global Ventures is a diversified yarn manufacturing company focusing on quality and distinction with continuous customer-driven innovation. Chirag Pittie, managing director, SVP Group, discusses the company's recent expansion strategies.
Please share details about your new plant in Jhalawar. What is the production capacity?
SVP Global has successfully commissioned a fully automated plant of 1,00,000 spindles in Jhalawar district of Rajasthan. It has a manufacturing capacity of 22,000 tonnes per annum and is spread across 25 acres. This plant has been commissioned in record time and is one of the fastest completed textile plants, constructed in just nine months. The plant will consume almost 25,000 MT of cotton annually. After the completion of this project, SVP Global's capacity will increase to 1, 98,000 spindles. The plant will produce high quality compact yarn of count 2 to 60.
How much employment will be generated with this plant?
The project will employ over 500 people directly. Since the plant will consume almost 25,000 MT of cotton annually, it will provide a stable source of livelihood to more than 30,000 farmers.
How much have you invested? Is there any modern machinery you use?
The project cost for this plant was approximately ? 450 crore, which was funded in a 60:40 debt to equity ratio. The plant will be fully automated with the most modern technology from blow room to winding. The entire plant and machinery have been selected from state- of-the-art machineries from reputed global companies like Rieter (Switzerland), Electro-Jet (Spain), LMW (India) and Schlafhorst (Germany).
For every bale of cotton and at all stages of the production process, the yarn will be tested in the world class quality control lab equipped with latest technology and quality control practices using testing machines by Uster (Switzerland). We aim to achieve the highest quality standards. Consistency in yarn quality parameters like yarn evenness, hairiness, strength and classmate value will be tested and monitored by Loepfe (Switzerland). Finally, each cone passes through the ultra-violet room to detect shade variation. Other equipment like link coners, auto-doppers and bobbin transport system have been deployed to increase the efficiency and reduce the operational cost of the plant.
Is this the second project under the Resurgent Rajasthan programme?
We are privileged and fortunate to be one of the first investments to fructify under the Resurgent Rajasthan programme, held on 19 November 2015. Projects like ours will help the Rajasthan government generate sustainable employment. As part of the package, we have significant advantages like interest subsidy, VAT benefit and electricity duty rebate. We were fortunate to get TUF window benefits, now closed, for spinning projects.
How can you claim this is the world's fastest constructed textile plant?
Typically, integrated spinning projects like this take around 1.5-2 years to complete. The company has set up this project in just nine months, making its construction one of the fastest.
Please share some information about your textile plants in other parts of the country.
Our initial manufacturing facilities are located at Ramnad, Coimbatore and Palani in Tamil Nadu where we manufacture cotton yarn, compact yarn, citra yarn, poly-cotton blended yarn and open-end yarn. These facilities are located in close proximity to each other and near major raw material and textile hubs. The total installed capacity of these three units is 98,000 spindles. These manufacturing units make yarn of count ranges 6 to 70. The company employs over 700 people across these plants.
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