SVP Global Textiles Ltd has announced an update on business operations amid the current geopolitical situation.
Plant Operation: – India and Oman -— Manufacturing operations in Jhalawar (Rajasthan) and Sohar Free Trade Zone (Oman) are operating at peak capacity.
Increase in cotton prices (raw material): – There is a huge spike in cotton (main raw material) prices due to the current geopolitical situation and the fall in domestic cotton production. This season, the price of cotton has risen from Rs 63,000 per candy to highs of Rs 94,000 per candy. Yarn prices have not been able to keep pace with rising cotton prices, which could put pressure on margins for all spinners. However, the situation is improving now and yarn prices are also catching up.
Order book position: – The company’s order book position is strong and to date stands at around Rs3000 crore, which equates to 23 months of sales. The company has recently been accredited by ISO-9001, Global Organic Textile Standard (GOTS) and Organic Content Standard (OCS), BCI, OEK-TEX, STD 100, Fair Trade, SUPIMA Gold and approved supplier of Zara and Ikea.
Commenting on the performance of the company, Major General (Dr) OP Gulia, SM, CEO of VSM (Retired) said, “The current geopolitical situation and its subsequent impact on the prices of cotton and other inputs, as well as the delay in logistics and exports, have had a negative impact on the textile industry as a whole and there could be pressure on margins in the short term.
SVP Global, however, is better equipped when it comes to manufacturing and advanced technology with AI and IOT capabilities.
Despite a difficult business environment, the company feels comfortable in carrying out business operations.”
At around 09:22, SVP Global Textiles was trading at Rs40.25 each, up Rs0.75 or 1.9% on BSE.