SVP Global Textiles works to reduce debts

Diversified yarn manufacturing business SVP Textiles is working to significantly reduce its debts by transitioning into an asset light business model in order to enable it to continue to expand this financial year.

As part of its strategy to de-leverage its balance sheet, SVP Global Textiles will undergo a major restructuring, the business’ CEO Maj Gen OP Gulia told ET Bureau. By harnessing efficient working capital management, the business’ board of directors is confident that SVP Global Textiles can reduce its debt as it divests itself of its non-core assets during the current financial year.

Alongside its debt reduction plans, the business also has ambitious expansion plans and is currently setting up a greenfield facility in Jhalawar, Rajasthan. The facility will manufacture a wide range of textiles including antibacterial knitted fabric for sportswear, medical use, and use in cosmetics. The site will also produce protective uniforms, mobiltech, and functional garments among others.

By focusing on the technical textiles segment, SVP Global Textiles expects to accrue revenue totalling Rs 175 crore each year from that segment alone. The business gained government permission for its Rajasthan expansion as part of its Production Linked Incentives scheme.

SVP Global Textiles works to reduce debts

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