SVP Global

- SVP Global Ventures Limited is currently raising funds through a preferential issue of warrants convertible into equity shares aggregating Rs. 235 crores to a promoter group entity, subject to member approval. - The proceeds from this warrant issue may be used for debt reduction and general corporate purposes. - The company’s strategy moving forward includes reducing debt. - No other concrete or major new debt reduction plans have been disclosed beyond this preferential issue. - Funds raised could also be used for funding new CAPEX overseas, including expansion projects such as the garmenting segment in Oman. - The board has approved these uses but specific allocations (debt reduction vs. expansion) have not been finalized yet.

- SVP Global Ventures Limited has a significant ongoing and planned capital expenditure (CAPEX): - Phase one of the Oman project involved CAPEX of approximately US$150 million (around Rs. 1,000 crores), operational since 2019. - Phase two expansion of the Oman project is proposed with a CAPEX of US$150 million, expected to be incurred by the end of FY 2022. - Phase two is a replica of phase one, aiming to double capacity. - Phase two funding is planned with 70% debt (US$105 million) and 30% equity (approx. US$45 million), plus a US$32 million working capital facility. - The company is also expanding into the garmenting segment with a proposed new project in Oman to become an integrated textile manufacturer. - The company plans to use funds from preferential warrants issue (aggregating Rs. 235 crores) partly for CAPEX and debt reduction. - Focus on modernizing plants and expanding high-margin compact cotton yarn capacity.

- The company is optimistic about growth in revenue and profitability going forward, supported by strong demand revival in the yarn market with volumes at pre-COVID levels (Page 6). - Full scale-up of operations in Oman is expected by FY 2021, leading to additional revenue growth from the US$150 million Phase 1 CAPEX and further expansion with Phase 2 CAPEX planned at $150 million by end of FY 2022 (Pages 9-10). - Focus on high-margin compact cotton yarn manufacturing with a capacity utilization of over 95% in India and Oman facilities ensures healthy order books and growth opportunities (Page 6). - Expansion into garmenting segment in Oman, targeting readymade apparel for local and international markets including Europe and US, to become an integrated textile manufacturer (Page 11). - The strategic location of Oman plant, operational efficiencies, and government support facilitate export-oriented growth and margin expansion (Pages 5, 8, 9).

- SVP Global Ventures expects growth in revenue and profitability driven by easing COVID-19 restrictions and strong demand revival in yarn markets. - Focus on high-margin compact cotton yarn has expanded EBITDA margins significantly (from 6.1% in 2017 to 13.2% in FY 2020; Q3 FY 2021 EBITDA margin at 20.6%). - Capacity utilization exceeded 95% for both India and Oman facilities, supporting volume growth. - Proposed expansion with Phase two CAPEX of $150 million in Oman aimed for FY 2021-22 to replicate Phase one success. - Oman plant is positioned as a 100% export-oriented unit, enhancing margin expansion via logistical and cost advantages. - Debt reduction efforts underway including preferential warrant issue proceeds and asset monetization, expected to improve financials. - New garmenting segment entry planned to create integrated textile manufacturing, supporting earnings diversification. - Technological upgrades and product mix shift to compact yarn continue to reduce costs and improve operational efficiency, positively impacting profits and EPS.

- The company reported healthy order books as of Q3 FY 2021. - They are optimistic about revenue and profitability growth in the coming quarters. - Capacity utilization for Q3 FY 2021 was more than 95% for operational facilities in India and Oman, indicating strong demand fulfillment. - Oman plant is fully commercialized with rotor units running at over 95% capacity and spindle units scaling up, supporting order fulfillment. - The company foresees growth opportunities domestically and in exports, leveraging the Oman facility as a 100% export-oriented hub. - No specific quantitative figure for current or pending order book was disclosed during the call, but management indicated strong, steady demand backed by full-capacity utilization.