Compact cotton yarn manufacturer, SVP Global Ventures Ltd on Wednesday said it will invest Rs 100 crore to set up a new facility for technical textiles at Jhalawar, in Rajasthan.
Being set up as part of its foray into technical textiles, the new manufacturing unit will have a production capacity of 4,375 MT per annum and will produce a range of products including protective uniforms and functional garments and medical textile, among others.
The company plans to commence commercial production from the new plant in 12 to 15 months, SVP Global Ventures Ltd said in a statement.
The unit will also manufacture other products such as anti-odour and antibacterial knitted fabric for sports, medical and cosmetic uses in apparel and expand gradually in other segments.
The company is looking to tap the opportunity in technical textiles, in which the government has recently introduced a production-linked incentive (PLI).
Commenting on the development, SVP Global CEO Maj Gen (retd) OP Gulia said, "Capex for the proposed greenfield facility for technical textile is expected to be around Rs 100 crore and will be funded from internal accruals."
He further said, "together with government support and bright prospects for the industry, we expect the forward integration will make significant contributions to the group's topline and margins. We expect revenues of approximately Rs 175 crore per year from the technical textiles."
SVP Global Director Chirag Pittie said the technical textiles industry is expected to be the next sunshine industry and it is expected to get much needed impetus from production-linked incentives announced by the government recently.
"Looking at the bright prospects for the industry, the Group decided to enter this field. The new facility is adjacent to our existing facility in Jhalawar (Rajasthan). The expansion will complement our core business and the plant is expected to start commercial operations in 12 to 15 months," Pittie added.
SVP Group is primarily engaged in manufacturing of polyester, polyester and cotton blend, and 100 per cent cotton yarn. It has three manufacturing facilities at Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman).
It had recently commenced commercial operations at its mega textile plant in Oman where it invested USD 150 million (around Rs 1,100 crore) in setting up a 1.5-lakh spindles and 3,500 rotors facility at the Sohar Free Trade Zone.