SVP Global Ventures Ltd. INVESTOR PRESENTATION August 2016
INDEX EXECUTIVE SUMMARY COMPANY OVERVIEW INDUSTRY OVERVIEW FINANCIAL OVERVIEW 2 2
EXECUTIVE SUMMARY BUSINESS & CONSOLIDATED REVENUE (%) MIX FINANCIALS (FY16) OVERVIEW KEY STRENGTHS • • Flexibility in SVP Global Ventures Ltd, manufacturing cotton, incorporated in 1982, is a • Product mix consists polyester or blended diversified yarn of Cotton, polyester & yarn based demand & manufacturing company blended yarns which it customer requirement. sells in the domestic and • Professionally managed • Strong client relationships of export market company, led by a dynamic more than a decade. • Total Income – promoter Mr. Chirag Pittie. • Diversified Quality of • Expanding into value-added INR 17,879 Mn • Company has three units in Yarn manufacturing compact yarn segment by Tamil Nadu with 98,000 setting up greenfield units in from Count 6 to Count • Spindles Capacity for Jhalawar, Rajasthan; EBITDA – INR 662 Mn 70 Specialized Polyester and Commercial production of first Cotton Blended Yarn unit to begin in July 2016. • FY16 Product mix: • PAT – INR 88 Mn catering to wide base of • Cotton 50 %, Polyester This project to have state of customers. the art machinery , lower and Blended 50 % power tariff benefits, and • In August 2015, SVP Global interest subsidies, • FY16 geographic mix acquired the entire business making to project of CITRON and its domestic 95 % and economically very subsidiaries for a book value international 5 % attractive. of Rs. 103 Crore. 3
INDEX EXECUTIVE SUMMARY COMPANY OVERVIEW INDUSTRY OVERVIEW FINANCIAL OVERVIEW 4
COMPANY OVERVIEW • SVP Global Ventures (“SVP”) is a yarn manufacturing company. • Headquartered in Mumbai, the company owns 3 units at Coimbatore, Palani, Madurai in Tamil Nadu with a installed capacity of 98,000 spindles for manufacturing Polyester & Cotton Blended Yarn. Manufacturing facility is fungible between specialized cotton, polyester and blended yarns depending on customer preference and demand scenario. There also is additional manufacturing capacity running on Job Work Basis/Contract Basis. • The Company has built some good brands in the yarn market that enjoy a good standing and reputation like DG TEX/SVP/SVRP. • SVP has strong expertise in sourcing best quality raw materials leading to higher quality yarns. • In July 2016, the company has commissioned a new plant in Jhalawar district of Rajasthan with an installed capacity of 1,00,000 spindle of compact yarn, this facility will produce compact yarn which are Low on hairiness, higher strength and elongation, less fiber fly, significant advantages in downstream processing. • SVP is also adding another unit for 2,400 rotors as well, which will commission in Q2FY2017. • The company further plans to add another 50,000 spindles by Q2 FY18. 5
CURRENT MANUFACTURING FACILITIES AT TAMIL NADU RAMNAD Manufacturing of cotton yarn, compact yarn, Citra yarn, PC blended yarn, open end yarn Capacity: 82,000 spindles Facilities are located in close proximity to each other and near Employee Strength: 550 major raw material and textile hubs. COIMBATORE Facility locations ensure flexibility in operations, working capital requirement optimization and low logistical costs. Capacity: 9,000 spindles Employee Strength: 100 Total Installed capacity of 98,000 spindles PALANI State of the art R&D facilities Capacity: 7,000 spindles Employee Strength: 100 Count range 6 to 70 6
EXPANSION PLANS AT RAJASTHAN - COMPACT YARN FACILITY JHALAWAR I & II Jhalawar Plant 1 Jhalawar Plant 2 • Inaugurated on 22nd July by Mrs. Vasundhara Raje, CM of Rajasthan • Timeline: Q2FY2017 • Commercial Production started in July 2016 • Expected Project Cost: 91 cr • Project Cost: 445 Cr • Funding: Equity mix - 37 Cr and Debt mix - 55 Cr. • Funding: Equity mix - 170 Cr and Debt mix - 275 Cr. • Proposed to manufacturing 2,400 rotors • Manufacturing capacity: 1,00,000 spindles • Total capacity in tones: 11,000 p.a. • Manufacturing capacity in Tonnes: 22,000 tonnes p.a • Facility spread across 5.13 acres Land • Facilities spread across 25 acres Land • State Subsidy: 6%+3%: Customized package for SVPL • TUF Interest Subsidy:2% • VAT benefit: 60% VAT to be paid back • State Subsidy: 6%+3% - Customized package for SVPL • Power Benefit: 50% Electricity Duty Rebate • VAT benefit: 60% VAT to be paid back • Count range 6 to 24s • Power Benefit: 100% Electricity Duty Rebate • Count range 20 to 60 7
EXPANSION PLANS AT RAJASTHAN - COMPACT YARN FACILITY JHALAWAR III Jhalawar Plant 3 • Timeline: Q2FY2018 • Expected Project Cost: 225.29 Cr • Funding: Equity ~ 65.29 Cr and Debt ~ 160 Cr. • Proposed to manufacturing 50,000 spindles (10,867 tonnes) • Total 10 acres Land bought to manufacture compact cotton yarn • State Subsidy: 6%+3% - Customized package for SVPL • VAT benefit: 60% VAT to be paid back • Power Benefit: 100% Electricity Duty Rebate 8
STRATEGIC ADVANTAGE OF RAJASTHAN Strategic Advantage of the New Facility RAJASTHAN Introduction: Rajasthan is a preferred business destinations for people around the world. Abundant natural resources, investment-friendly policies, a vast and unexplored talent pool and a secular environment are some of the reasons why national and international business giants are drawn to this magnificent state. Policies: • A number of innovative policies including the Industrial and Investment Promotion Policy (RIPS) announced by the current state government have boosted the investment prospects in the state. • TUF Interest Subsidy:2% • State Subsidy: 6%+3% - customized package for the group • VAT benefit: 60% VAT to be paid back • Power Benefit: 100% Electricity Duty Rebate Connectivity: Jhalawar • 5 KM from city centre • By Air : 12 KM from JhalawarAirstrip Dhanodi Sp 2-1 Dhanodi Sp 1-3 • By Rail : Jhalawar has a newly constructed railway station. Railway station is 2 k.m. Dhanodi Sp 4 far from jhalawar. • By Road :90 KM from Kota 220 KM from Indore 220 KM from Bhopal 340 KM from Jaipur 9
CURRENT PRODUCT BASKET • Cotton remains the most important natural fibre, so is treated in depth. • It is used as the basic fiber for any textile making company. • Its mainly used to make cloth fabric and readymade garments and other uses to. • Polyester thread or yarn are used extensively in apparel and home furnishings, from shirts and pants to jackets and hats, bed sheets, blankets, upholstered furniture and computer mouse mats. • Polyester fabrics are highly stain-resistant — in fact, the only class of dyes which can be used to alter the colour of polyester fabric • Blended yarn production, process of combining fibres of different origins, length, thickness, or colour to make yarn. • Blending is accomplished before spinning and is performed to impart such desirable characteristics as strength or durability, to reduce cost by combining expensive fibres with less costly types, or to achieve special colour or texture effects. 10
FORAY INTO COMPACT YARN Ring Spun Yarn • Compact yarn is a revolution in spinning technology. Over recent years, the system of compact spinning has constituted a rapidly developing technological trend in most countries. • The compact spinning is a process where fibre strand drawn by drafting system is condensed before twisting it. Compact Yarn • The Company is launching its compact yarn segment in Jhalawar district of Rajasthan. It is entering the compact yarn business due to the following benefits • Better smoothness • Higher lustre • Abrasion fastness better by 40-50% • Hairiness lower by 20-30%, as measured with the use of the ster Compact Yarn advantage apparatus • Low hairiness • Increase Production by 8% approximately. • Higher strength and elongation • Hairiness lower by 60%, as measured with the use of the Zweigle • apparatus Less fiber fly • Tenacity and elongation at break higher by 8-15%, and smaller mass • Significant advantages in downstream processing irregularity 11
MANAGEMENT TEAM Well Experienced Management Team • Mr. Chirag Pittie is the Mr. V.S.Reddy – second generation Mr. Praveen Shelley - Professional Director entrepreneur of SVPL. Professional Director • 25+ Years • 30+ Years • He has a BSBA degree in Finance and Mr. Rupesh Nigam – Mr. Narendra Jain – Chief Operating Officer Vice President Finance Management from Boston University, USA. • 20+ years • 20+ Years • He has a vision of Mr. Bhanu Pareek – Mr. Harish Datti – MR. CHIRAG PITTIE – MD Sr. Vice President (Operations) converting the close Chief Engineer family held business • 20+ Years • 20+ Years into a leading public company delivering superior returns to shareholders Mr. R. Muthumanickam – Mr. Santosh Kumar Sinha - Vice President (Operations) Vice President (Technical) • He is supported by a strong, well experienced and • 35+ Years • 25+ Years professional management team. 12
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