Amsterdam-based sustainable fashion initiative Fashion for Good has announced the first beneficiary of the Good Fashion Fund, which aims to drive sustainable manufacturing practices.
Indian manufacturer Pratibha Syntex Limited, which supplies textiles and garments to fashion giants like C&A, H&M, Patagonia and Zara, has received the 4.5 million dollar, long-term loan.
The company was founded in 1997 in Pithampur, India, and is today recognised as a sustainably-oriented, vertically integrated “farm-to-fashion” textile and garment producer employing over 6,000 workers, and connecting 35,000 farmers and apparel brands from over 20 countries.
The company produces over 40 million garments annually.
The new capital will be used to replace the company’s machinery and expand its sustainable equipment in its spinning, processing and garmenting divisions, which will lead to a significant reduction in water, energy and chemical usage, according to Fashion for Good.
“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,” said Pratibha Syntex managing director Shreyaskar Chaudhary in a release.
The Good Fashion Fund, which has a target size of 60 million dollars, was launched in 2019 to spearhead systemic change in the apparel and footwear supply chain by investing in the implementation of innovative technologies in India, Bangladesh and Vietnam.
It is a collaboration between Fashion for Good, Laudes Foundation, Hong Kong-based The Mills Fabrica and advisory firm Fount.
The fund’s director Bob Assenberg described the investment made with Pratibha Syntex as “a monumental first step” for the Good Fashion Fund.
“We are very excited partnering with Pratibha and we’re committed to driving positive change in the apparel value chain and look forward to concluding more investments with forward-thinking manufacturers, brands and technology companies in the region,” Assenberg said.