The International Finance Corporation (IFC) and the biggest worldwide leader in the apparel industry, EPIC Group, have announced a major financial cooperation to boost resource efficiency improvements and sustainable textile manufacturing in Bangladesh and India. IFC is providing a sizable US $ 100 million debt financing package for the cooperation, which consists of a US $ 30 million green loan and a US $ 70 million loan related to sustainability.
With this financial support, EPIC Group will be able to carry out its ambitious expansion ambitions, which include modernising its operations in Bangladesh and building a new production plant in India. The money is specifically intended to upgrade a washing and wastewater treatment facility and to purchase state-of-the-art equipment that reduces water and energy usage. With the introduction of its first green loan with sustainability-related characteristics in the industrial sector, this project represents a trailblazing move by IFC.
Significant job opportunities are expected to result from the partnership, with around 10,500 direct jobs and 17,000 indirect jobs created in both countries. The loan deal also includes strict corporate sustainability performance goals, like lowering freshwater consumption, increasing the proportion of women in junior and middle management positions, and reducing greenhouse gas emission intensity per garment by 65 per cent by 2030 (relative to 2019 levels).
Ranjan Mahtani, Executive Chairman of EPIC Group, emphasised the importance of this partnership, “Partnering with IFC is a significant step for EPIC Group in pursuit of a more sustainable and innovative textile manufacturing industry. This collaboration not only allows us to expand our operations but also reinforces our commitment to reducing our environmental footprint and enhancing resource efficiency.”
With this investment, IFC is expanding its long-standing partnership with EPIC Group, which began with consultancy services on decarbonisation and greener production. With more than 30,000 employees and a strong global presence, EPIC Group is still a major power in the clothing sector. It is renowned for its dedication to innovation and sustainability, combining cutting-edge technology with data-driven insights to satisfy demands in the global retail market.
