Indian compact cotton yarn manufacturer SVP Global Ventures yesterday announced commissioning its mega textile plant in Oman. The group has invested $150 million (around ₹1,100 crore) in setting up a facility with 1.5 lakh spindles and 3,500 rotors at the Sohar Free Trade Zone. The expansion offers several operational, financial, strategic and logistics benefits.
The benefits include lower power and capital costs compared to India, negligible import-export duties and a corporate tax holiday of over 25 years. Oman also has free trade agreements with several nations like the United States and Turkey.
The plant, built by the group’s subsidiary SV Pittie Sohar Textiles, is expected to reach peak utilisation by September 21.
“The strong demand for high margin combed compact cotton yarn coupled with sales off-take agreements will enable us to fully utilise the new capacities and enhance value for our stakeholders,” group director Chirag Pittie was quoted as saying by Indian media reports.
With the completion of expansion at Sohar, the total operational capacity of the company has increased to 4 lakh spindles and 5,900 rotors.