The Good Fashion Fund signed its first deal with Indian manufacturer Pratibha Syntex Limited in 2020 for a 4.5 million US dollar long-term loan . The Good Fashion Fund will invest USD 4.5 million to upgrade equipment in the spinning, processing, and garmenting divisions .
On December 9, in Indore (Madhya Pradesh) (India), the Good Fashion Fund, a fund established by the Fashion for Good and Laudes Foundation to promote sustainable manufacturing practices, signed its first deal with Indian manufacturer Pratibha Syntex Limited in 2020 for a 4.5 million US dollar long-term loan.With the final disbursement of the loan made in June this year, as well as the first on-site monitoring visit this week, the project is already showing promising financial, environmental, and social impact in the Pratibhas spinning, processing, and garmenting divisions.The Good Fashion Fund will invest USD 4.5 million to upgrade equipment in the spinning, processing, and garmenting divisions, as well as provide new equipment for the expansion of their activities and facilities.We're delighted with this partnership and are eager to continue our journey of positive changePratibha Syntex Limited's Managing Director Shreyaskar Chaudhary This week, the Good Fashion Fund was accompanied by its advisors Sphera, FairwearFoundation, Global CAD, and Adelphi to be able to assess results from this investment.Both sides were enthralled by the progress made on the environmental and social action areas, as well as with Pratibha Syntex Limited's roadmap for future developments as part of their 2025 and beyond strategy.We are extremely happy with our collaboration with Pratibha Syntex Limited, a frontrunner in terms of sustainability.Our investment has had a far-reaching environmental, social, and financial effect on the environment, which is above expectation and in keeping with our goal to bring impact technologies to the market in order to solve our challenges together.Sustainability is deeply embedded in their DNA, as shown by the findings of the observation trip, and thus fully compatible with the objectives of the Good Fashion Fund. Since the investment was made, Pratibha Syntex has installed new spinning equipment, solar panels, a continuous tumble dryer, and improved effluent treatment.Both in terms of energy consumption and waste created, the new spinning equipment (card chute, comber, ring frame, and autoconer) operates much more efficiently than the old equipment.While investment in solar panels is ongoing, more than 30% of electricity is now used with renewable energy, and new installations are planned to double this number.The continuous tumble dryer has replaced a variety of equipment used to treat fabrics and has totally eliminated the need for water and dramatically reduced the electricity usage in this step. Pratibha is implementing a system in which neighbouring wastewater is treated in addition to their own, using the resultant pure water to achieve complete circularity and eliminate the need for freshwater.The investment has a direct effect on water usage, wastewater discharged, and chemical use.The Loudes Foundation supports brave actions to encourage and inspire the industry to use its power for good by means of initiatives like the Good Fashion Fund.The contribution of Pratibha Syntex to the environment and society is a great example of how finance can accelerate apparel manufacturing decarbonization and help to create safe and dignified jobs for all apparel workers. They are actively supporting women empowerment and inclusion with the intention of increasing the number of women in executive roles and engaging directly with senior management to understand and participate in the entire business.