The Good Fashion Fund, initiated by Amsterdam-based Fashion for Good and Laudes Foundation to drive sustainable manufacturing practices, announced that it has completed the first on-site monitoring of India-based manufacturer Pratibha Syntex Limited.
The Amsterdam foundation had signed its first deal with the Indian manufacturer in 2020 for $4.5M (approximately €4.2M) as a long-term loan. The final disbursement of the loan was made in June of this year.
As part of the visit, Good Fashion Fund, supported by its advisors Sphera, Fairwear Foundation, Global CAD, and Adelphi, established progress since the investment.
How did the fund get utilised?
The $4.5M investment was committed to Pratibha Syntex to replace machinery in the spinning, processing, and garmenting divisions, and provide new equipment to expand their activities and facilities.
The foundation claims that the impact results of the equipment comfortably surpassed the threshold of 50 per cent in all key areas, specifically in Energy, Water, and Materials.
“All parties were impressed with the progress made on the environmental and social action items and particularly with the roadmap developed by Pratibha Syntex Limited for further improvements as part of their vision 2025 and beyond,” says the company’s press release.
“With the capital provided by the Good Fashion Fund, Pratibha Syntex can invest in securing a sustainable future for our processes which will have positive, compounded effects along the value chain. We’re extremely pleased with the partnership and excited to continue on our journey for positive impact,” says Shreyaskar Chaudhary, Managing Director, Pratibha Syntex Limited.
What’s new?
Since the investment, Pratibha Syntex has installed new spinning equipment, solar panels, a continuous tumble dryer, and made enhancements to effluent treatment.
The new spinning equipment (card chute, comber, ringrame, autoconer) operates significantly more efficiently than the legacy machinery in energy usage and waste generated.
The foundation claims that investment in solar panels is ongoing, but more than 30 per cent of usage is already met by renewable energy, with additional installations planned.
Also, the continuous tumble dryer has replaced several pieces of equipments used for treating fabrics, has fully eliminated the need for water and has significantly reduced power usage in this process.
Additionally, a treatment plant has been enhanced with new filters allowing for additional water recycling, reclaiming most of the water used (some water is lost to evaporation), eliminating chemical sludge generated (reducing landfill waste), and reducing energy consumption.
To achieve complete circularity and reduce the need for freshwater, Pratibha is setting up a process whereby neighbouring wastewater is treated in addition to their own, using the resulting clean water in their process.
“We are very pleased with the partnership with Pratibha Syntex Limited, a frontrunner in terms of sustainability. The first environmental, social and financial impact resulting from our investment is above expectations and in line with our mission to connect impact technologies to the industry to tackle its challenges collaboratively. It is clear from the results of the monitoring visit that sustainability is ingrained in their DNA and thus fully aligned with the objectives of the Good Fashion Fund. We will continue to invest in apparel manufacturers in India and Bangladesh to deliver good fashion practice, economic growth, and fair jobs – demonstrating how to invest beyond sustainability and towards a restorative and regenerative apparel supply chain,” says Bernadette Blom, Director of the Good Fashion Fund.
Besides manufacturing cotton, fibres, fabrics, and apparel, Pratibha Syntex is also engaged in social initiatives to generate employment for women in rural communities.
“Laudes Foundation supports brave action to inspire and challenge the industry to harness its power for good through initiatives like the Good Fashion Fund. The environment and social impact that Pratibha Syntex has been able to make with this investment is a great example of how finance can rapidly accelerate apparel manufacturing decarbonisation and help provide safe and dignified jobs for all apparel workers,” says Kelly Clark, Director of Finance and Capital Market Transformation at Laudes Foundation.
