SVP GROUP'S COTTON YARN PLANT TO CREATE UP TO 1,000 JOBS IN SOHAR.
The cotton yarn manufacturing project which is being set up by India's ShriVallabh Pittie Group (SVP) with a total investment of US$300mn at Sohar Freezone will create between 700 to 1,000 jobs. SVP Group is one of the largest manufacturers of cotton yarn in India.
'This is a US$300mn project which would be split in two phases of US$150mn each. The first phase would be completed within 15 to 18 months from now because we are about to begin construction works this week. Construction for the second phase should probably start after six months,' Vinod Pittie, chairman of SVP Group told Muscat Daily in an interview.
He said the company expects to start production from first phase of the plant by first quarter of 2019, and from second phase production will start by the end of next year.
'This project will create between 700 to 1,000 job opportunities in Sohar. We are also planning to set up a training centre in Sohar to train Omanis to work at the plant,' Pittie said.
SVP Group, in September last year, signed a land lease agreement with Sohar Freezone to build the plant which will manufacture a wide range of cotton yarn.
The plant is to be operated as SV Pittie Sohar Textiles FZC, which will be a subsidiary of SVP Global Ventures. Chirag Pittie, managing director of SVP Group, will oversee the group's Oman operations and will be the managing director of SV Pittie Sohar Textiles FZC.
'The most important unique feature of this plant is that it will be a fully environment-friendly project, no water discharge and no air pollution.
'Since the whole plant would be almost air-conditioned, it will provide a fantastic work atmosphere. Like our plants in India, the Sohar plant will also provide a suitable working environment for women employees,' Vinod Pittie said.
He said the company's plant in Sohar, which will be the first textile project of this magnitude in the GCC region, will have total capacity to produce 300,000 spindles and 7,000 rotors annually. 'This project would be fully export-oriented. All quantity of cotton yarn that will be produced here will be exported out of Oman. We are looking to export cotton yarn from Oman to Bangladesh, Pakistan, Turkey, China and European markets,' Pittie added.
He said that a major advantage to establish the project in Oman is the location of Sohar port which will enable the company to save on logistics costs. 'We can easily import raw materials at Sohar port and can easily export cotton yarn to other markets from here. We recognised the logistics potential and Oman's competitive advantage, besides the excellent bilateral relations between India and Oman.'
Pittie added that the total investment of US$300mn in the project will be through 70 per cent debt and 30 per cent equity.