In conversation with O P Gulia, CEO, SVP Global Ventures

Shreya Chaware
/ Categories: Mindshare, Interviews
In conversation with O P Gulia, CEO, SVP Global Ventures

Considering the recession in the textile sector in China due to the global hesitance to buy textile products from China due to the pandemic, India is poised to take full advantage of the situation.

"We are proud to be in the 2 per cent of the manufacturers of the world, having technology, which is less than 5 years old. The remaining 98 per cent of the yarn manufacturers are using technology, which is aged more than 5 years."  says O P Gulia, CEO, SVP Global Ventures 

1. What is your outlook on the Indian textile sector? 

India is the third-largest textile manufacturing industry and holds an export value of more than USD 30 billion. The textile industry is the second-largest sector after agriculture in the country’s employment generation. With over 45 million people employed directly, the textile industry contributes 4 per cent of the gross domestic product (GDP), 20 per cent of the industrial output, and slightly more than 30 per cent of export earnings. Considering the recession in the textile sector in China due to the global hesitance to buy textile products from China due to the pandemic, India is poised to take full advantage of the situation. Also, there are new avenues like technical textiles, the Indian textile & apparel industry is poised to touch a level of USD 226 billion by 2023 from the level of US $133 billion in 2020. It is apparent from the increased demand and better price for textile products. 

2. How do you plan to drive expansion in the end-user segment to ensure diversity in revenues and end markets? 

We have been manufacturing cotton yarn so far. However, the company has the vision to be ‘Fibre to Fashion’ and accordingly, we are doing the forward integration. We are now venturing into the garments sector and the first plant is coming up in Oman, targetting the markets of GCC, USA & Europe. We would be able to produce these at a much competitive price due to the operational & logistics advantages being collocated with the spinning plant. 

3. How have technological advancements and automation helped your company improve operational efficiency and outperform peers? 

Enabled by state-of-the-art machinery, our plants in India and Oman are the most technologically advanced, having machinery from Rieter (Switzerland), Electro-Jet (Spain), Schlafhorst (Germany) and Lakshmi Machine Works (LMW, India). We are proud to be in the 2 per cent of the manufacturers of the world, having technology, which is less than 5 years old. The remaining 98 per cent of the yarn manufacturers are using technology, which is aged more than 5 years. The state-of-the-art machinery along with the latest technology uses artificial intelligence to enable the company to manufacture yarn of the highest quality at optimum operational efficiency and result in higher operating margins in relation to traditional spinning mills. 

Our processes range from blow room to carding, drawing, lap forming, combing, speed frame, ring spinning, winding, conditioning and packing. The AI-based control panels set all the required parameters of manufacturing with the least human intervention. This has not only, fastened the process but also, improved the quality & cost-cutting. 

4. Can you throw some light on your foray into compact yarn and changes in product mix? 

Our product mix over the years has been shifting towards compact cotton yarn. It is the finest quality cotton yarn with superior strength and lustre. It is a high margin high demand yarn. Our product mix presently is 84 per cent compact cotton yarn and 16 per cent traditional yarn. Our endeavour is to further increase it. 

5. How do you intend to leverage your existing capabilities to foray into the garment sector? 

Our existing capability provides us with the edge to leverage it into forward integration. The company has plans to set up garment units in Oman and India. There are major advantages of technology and skill, which we will leverage to start these units. The logistics efficiencies to access domestic and Middle East markets provide us with a major edge over our peers. Our Oman facility provides us easy access to Europe and the US markets. 

6. What are your top three strategic objectives?

Our top three strategic objectives are:- 

(a) To be a fully integrated textile company from Fibre to Fashion manufacturing the entire value chain like garments, home textiles and technical textiles. 

(b) Leverage the modern technology to remain ahead of peers in the textile industry. 

(c) To expand the operations to all continents and be a leading compact cotton yarn producer in the world. 

7. What are your growth levers? 

Our growth levers are:- 

(a) People: The company has a very experienced, dedicated highly skilled manpower, which is a major growth lever. 

(b) Technology: The second-best growth lever is the technology that we have invested in our plants. They are the most modern, state-of-the-art, AI-based technology units right from blow room to winding & packaging. We are among the 2 per cent modern units in the world whose machines are less than 5 years old. 

(c) Dynamic leadership: SVP Global has the most dynamic forward-looking leadership, which always plans well in advance to remain ahead of the times. 

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