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Work on $300m-yarn project to start in weeks
January 21, 2018 | 5:48 PM
by A E JAMES/[email protected]
Vinod Pittie, chairman of ShriVallabh Pittie Group. - Supplied picture
 
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Muscat: SV Pittie Sohar Textile FZC LLC, a wholly-owned subsidiary of India-based SVP Global Ventures Ltd, is expected to start work on its $300 million state-of-the-art cotton yarn project in Sohar free zone within a couple of weeks.

‘We are waiting for some clearances and permits, which are all formalities and will be completed in a week’s time. We will start the construction work after a week,” Vinod Pittie, chairman of ShriVallabh Pittie Group, told Times of Oman, in an exclusive interview.

SV Pittie Sohar Textile, which has already awarded a $260 million engineering, procurement and construction (EPC) contract to a UAE-based contracting firm, plans to produce 0.3 million ring spun spindles and 7,000 rotors per annum, added Pittie.

However, he declined to name the EPC contractor. “We have divided the whole yarn project into two phases — each with an investment of $150 million.”



The first phase is expected to start operation in April 2019, while the second phase would come on stream within two years of starting work. “Half of the production capacity will be on stream in the first phase.”

The project, which will manufacture a wide range of cotton yarn, is also going to be the first major cotton yarn plant in the region.

Chirag Pittie, SVP Group’s Managing Director, will oversee the operations of Sohar project.

Pittie, who was on a short visit to Oman to speed up the project implementation, said that of the total $260 million EPC contract, $220 million is envisaged for purchasing machinery and equipment.

The company plans to import its entire raw material from Australia and the United States, while the finished yarn will be exported to several global markets, including Bangladesh, Pakistan, Turkey and some of the European countries.

The company is looking for automatic bale plucking lines, auto-doffing at roving frame and ring frame, automatic transportation system and energy saving devices.

“The project will be one of the most automated plants in the world and the machinery and equipment will come from most advanced machinery manufacturers in Germany, Switzerland and India,” said Pittie, adding; “The main suppliers of these equipment include Schlaufers, Rieters and Truscheler.”

Pittie added that SV Pittie Sohar Textile, which will provide employment for 700 people, last year signed an agreement with Bank Sohar for funding the $300 million project. As much as 70 per cent of the fund will be by way of debt, while the remaining 30 per cent will be through equity investment.

SV Pittie Sohar Textile and Sohar Industrial Port Company have also signed a land lease agreement last year to set up the project within the free zone, adjacent to a modern port.

The new SVP facility will be the first step in establishing a fully-fledged textile cluster in Sohar Free Zone. Downstream investments in knitting, weaving, spinning and fabric manufacturing could create a thriving industrial cluster providing thousands of new jobs for local people.

ShriVallabh Pittie Group, which is listed on the Bombay Stock Exchange, is one of the largest manufacturers of cotton yarn in India and a global leader in the sector.

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