SV Pittie Sohar plans $100mn fabric manufacturing unit
SV Pittie Sohar Textiles, which is setting up a US$300mn yarn manufacturing facility at Sohar Port and Freezone, is also planning to set up a forward integration unit to manufacture fabrics with an investment of around US$100mn.
Speaking to media-persons on Thursday, Vinod Pittie, chairman of SV Pittie Group, said that the progress on the planned US$300mn textile manufacturing unit has been very good and going forward the company may further explore investment proposal to set up a fabric manufacturing plant as a forward integration initiative.
SV Pittie Sohar Textiles last week announced the commencement of production on Unit 2 at its world-class cotton yarn production facility in Sohar. The company already commenced production of Unit 1 in
“Our aim is that once we complete US$300mn investments, we will embark on a further expansion through forward integration,” Pittie said.
Explaining the proposed initiative, he said cotton is used as a basic raw material for producing yarn and then yarn is processed to make fabrics. “In the next phase, which is still at planning stage, we would like to set up a fabric manufacturing unit. Once fabric is manufactured, it would give way to other value added products such as home furnishing and stitching of garments etc.”
On investment, he said the total investment in the expansion project would be around US$100mn and they are looking at the possibility of raising the capital through the stock market. On the timeline of the project, he said, “Everything is at the initial stage, so difficult to give exact timeline of the project, but works related to structuring and paperwork and other such details are going on.”
“If everything goes as per the schedule, soon we are going to make the announcement in this regard,” Pittie added.
Speaking about other initiatives of the company, he said SV Pittie Sohar Textiles is working on a number of projects including promoting cotton cultivation in the country and roping in SMEs to promote a textile manufacturing hub in the country in the near future.