$100M Boost for Green Garments in India, Bangladesh
The International Finance Corporation (IFC) announced a new partnership with EPIC Group, a major player in apparel manufacturing, to improve resource efficiency and sustainability in the textile industry of Bangladesh and India.
This collaboration will support EPIC Group's growth plans and create new jobs in both countries.
$100 Million for Green Initiatives
IFC is providing EPIC Group with a $100 million debt financing package. This includes a $70 million loan tied to sustainability performance and a $30 million green loan specifically for eco-friendly projects. The funding will help EPIC Group expand its operations in Bangladesh, build a new factory in India, and upgrade its water treatment facilities. Also, EPIC Group will invest in technologies that reduce energy and water consumption.
Jobs and Environmental Impact
This partnership is expected to generate over 10,500 direct jobs and 17,000 indirect jobs in Bangladesh and India. IFC's loan has specific sustainability goals, including reducing greenhouse gas emissions per garment by 65% by 2030 (compared to 2019 levels). This is important because the textile industry is a major source of greenhouse gases, particularly in Asia.
More Than Just Money
IFC will also provide advisory services to EPIC Group. This support will help them improve their environmental, social, and governance (ESG) practices and achieve their goals for gender diversity in leadership positions.
A Win-Win for the Region
"IFC is committed to supporting a robust textile and apparel value chain across Asia," said Riccardo Puliti, IFC's Vice President for Asia and the Pacific. "IFC’s funding will enhance the competitiveness of the textile sector in Bangladesh and India by supporting a leading ready-made garment manufacturer to increase efficiency and improve its manufacturing processes through sustainable practices. Making the textile sector more sustainable and competitive is key to the region’s future economic resilience.”
“Partnering with IFC is a significant step for EPIC Group in pursuit of a more sustainable and innovative textile manufacturing industry,” said Ranjan Mahtani, Executive Chairman of EPIC Group. “This collaboration not only allows us to expand our operations in Bangladesh and India but also reinforces our commitment to reducing our environmental footprint and enhancing resource efficiency. Together with IFC, we are paving the way for a more resilient textile sector.”
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Source: EPIC Group
