The International Finance Corporation (IFC) has funded $22.7 million in Hamza Textiles Limited (HTL), a textile finishing company of the Dulal Brothers Ltd. (DBL) Group, to boost Bangladesh’s readymade garments (RMG) sector’s global viability. The funds would be used to assist the company establish a new plant using sophisticated and resource-efficient technologies.
More than 900 direct employment will be created by the new factory.
The new funding is the IFC’s first COVID-19 support in the RMG sector, and it includes funding from the International Development Association’s Private Sector Window (IDA-PSW), which was established to help reduced and fragile nations attract investment. “The new warehouse will enable Hamza to work with the new fabrics to meet increasing buyer necessities, broaden its manufacturing economy, and illustrate the efficiency of innovative materials to reduce production costs and provide environmental benefits,” DBL Group managing director MA Jabbar said in an IFC press release.
The new funding is the IFC’s first COVID-19 support in the RMG sector, and it includes funding from the International Development Association’s Private Sector Window (IDA-PSW), which was established to help reduced and fragile nations attract investment. “The new warehouse will enable Hamza to work with the new fabrics to meet increasing buyer necessities, broaden its manufacturing economy, and illustrate the efficiency of innovative materials to reduce production costs and provide environmental benefits,” DBL Group managing director MA Jabbar said in an IFC press release.
According to the press release, the expanded operation is also expected to contribute $8 million to Bangladesh’s economy directly and indirectly through local supply chains by 2028, $15 million in expected economic activities generated by additional employee income, and increase opportunities for micro, small, and medium enterprises along the supply chain. HTL offers dyeing process services for textiles used in the production of RMG by its sister companies, which are owned by the DBL Group, one of Bangladesh’s largest integrated knitted clothing producers and distributors.
The IFC investment will enable HTL to increase its finishing capacity by 80 tonnes per day, bringing its total capacity to 103 tonnes per day at its new factory, which will also be a LEED-certified green building.
To date, IFC has invested in five RMG producers in Bangladesh, totaling more than $90 million, the majority of which has been in the form of financial capital. The most recent investment is IFC’s second with DBL Group.
To date, IFC has invested in five RMG producers in Bangladesh, totaling more than $90 million, the majority of which has been in the form of financial capital. The most recent investment is IFC’s second with DBL Group.
