$17.5 M IFC support for Indian textile firm

Tuesday, 01 July 2003, 19:30 IST
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WASHINGTON: The International Finance Corporation (IFC) will provide a rupee loan equivalent of $17.5 million to an integrated Indian textile company. Mumbai-based Alok Industries Ltd conducts texturising, weaving, knitting, processing, garmenting and home textile operations. The loan is part of a financing package that will allow Alok Industries to expand and modernise its facilities. The project also involves improving operational efficiencies and upgrading environmental and social standards, says an IFC press release. The company will use the financing package to complete its state-of-the-art processing plant at Vapi in Gujarat and add various texturising, weaving and knitting facilities in Maharashtra and Dadra and Nagar Haveli. In addition, the project includes a provision for working capital and will enable Alok Industries to refinance some of its long-term debt. "This transaction is an example of how IFC can apply its experience in assisting a niche company with proven business expertise and excellent management in the emerging markets," said Richard Ranken, director for Global Manufacturing and Services at IFC. Dimitris Tsitsiragos, IFC director for South Asia, said: "This investment is part of our strategy to help innovative Indian companies expand into global markets, creating export earnings and generating employment." The mission of IFC is to promote sustainable private sector investment in developing countries, help reduce poverty and improve people's lives.
Source: IANS
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