Good Fashion Fund Invests $1.75M in Sharadha Terry's Sustainable Rug Unit
The Good Fashion Fund (GFF), managed by Dutch impact investment firm FOUNT, has finalized a $1.75 million investment in Sharadha Terry Products Pvt. Ltd. (STPPL), a leading Indian manufacturer of premium bed and bath textiles known for its MicroCotton® brand. This funding will support the establishment of a new sustainable bath and area rug manufacturing unit—Sri Gugan Mills—in Metupalayam, Tamil Nadu.
This marks GFF’s final investment under its current portfolio, with plans underway to launch a second fund (GFF 2.0) aimed at building on the impactful legacy and learnings of the first.
Good Fashion Fund team at Sharadha Terry / Micro Cotton® booth at Heimtextil Expo ‘25, Frankfurt
L – R – Sruthi Ramesh (Sr. Analyst, GFF), Vikram Krishna (MD, STPPL), Jayanth Kashyap B (Investment Lead, GFF)
The investment will finance the installation of advanced tufting machinery and accessories at the new facility, which will boast a production capacity of 4 million square meters annually. The unit will primarily produce dope-dyed polyester and cotton bath rugs, with additional recycled fiber variants in development. Key sustainability features include significant reductions in water usage, elimination of harmful dyeing chemicals, and a state-of-the-art effluent treatment plant capable of reclaiming up to 98% of wastewater—placing STPPL among India’s few large-scale, sustainable rug producers.
Beyond environmental advancements, the facility is expected to generate over 200 new jobs for local men and women, furthering STPPL’s commitment to inclusive community development.
India's prominence in the global home textile market provides STPPL with a strategic advantage. With the launch of the ‘Sharadha Rugs’ brand at Heimtextil 2025 in Frankfurt, the company is expanding its product range while strengthening its reputation for environmentally responsible production. The entire operation is powered by renewable energy—specifically, 5.1 MW of wind and 10.1 MW of solar energy from Sharadha’s captive generation facilities.
Leadership Commentary:
Vikram Krishna, Managing Director of STPPL, expressed enthusiasm for the partnership, stating, “This collaboration with the Good Fashion Fund empowers us to broaden our sustainable offerings into bath and area rugs, maintaining our unwavering focus on environmental and social responsibility.”
Bob Assenberg, Fund Director of GFF, remarked, “We’re proud to conclude the first Good Fashion Fund cycle with this meaningful investment. STPPL exemplifies what responsible manufacturing looks like, and we’re eager to support their journey into a greener future.”
About the Good Fashion Fund:
Initiated by Fashion for Good, GFF is supported by the Laudes Foundation, The Mills Fabrica, and Rabobank. With $19 million in blended capital, the fund offers long-term financial support and technical guidance to Asian textile manufacturers. Its aim is to stimulate sustainable innovation across all tiers of the supply chain.
Other current GFF investees include K.K.P Fine Linen, Pratibha Syntex, Sri Kannapiran Mills (India), Progress Apparels, and EPIC Group (Bangladesh).
About Sharadha Terry Products Pvt. Ltd.:
STPPL, operating under the KG Group banner, has been crafting eco-conscious home textiles since 1932. Known for its legacy of innovation, the company has led industry benchmarks in water recycling, renewable energy, responsible sourcing, and worker welfare. It was the first Indian terry towel producer to obtain Made in Green certification and continues to lead with initiatives like zero coal usage, FSC-certified towels, biodegradable packaging, and gender-inclusive employment practices.
For more information:
🔗 Good Fashion Fund
🔗 Sharadha Terry / MicroCotton® | MicroCotton.com