PROJECT

Projects

Summary of Investment Information

Project Number

43454

Company Name

HAMZA TEXTILES LIMITED (INVESTMENTS)

Date SPI Disclosed

Mar 17, 2021

Country

Bangladesh

Region

South Asia

Projected Board Date

Apr 22, 2021

Environmental Category

B - Limited

Status

Active

Last Updated Date

Mar 7, 2022

Department

Regional Industry - MAS Asia & Pac

Industry

Manufacturing

Previous Events

Approved : May 28, 2021
Signed : May 31, 2021
Invested : Jan 28, 2022

Sector

Finishing (Dyeing, Printing, Finishing, etc.)

Additional Project Attributes

Blended Finance

Project Description

  Hamza Textiles Limited (the “Company” or “HTL”) provides dyeing and finishing services for fabrics that are utilized in the manufacturing of Ready-Made Garments (“RMG”) by its sister concerns. Finishing facilities include activities such as stenting, compacting, continuous tumbler drying, continuous washing, brushing, continuous bleaching, shearing, all over fabrics coating etc. 

 

Associated Advisory Engagement

 IFC’s Advisory Services have been engaged with HTL and several other group companies owned by the same Sponsors (“DBL Group”) since 2011 on various programs, and through these engagements IFC’s relationship with the DBL Group has strengthened.

  • Collaboration through PaCT program: HTL, Jinnat Knitwears Limited and Matin Spinning Mills Limited participated in this program. HTL was signed up for the program through PUMA. HTL underwent an in-depth Cleaner Production Assessment in 2013 and 2018. HTL invested US$2.5 million in resource efficient technology and management practices, resulting in an annual return of ~US$ 956,000 from 2013-19. HTL reduced its water and greenhouse gas emissions by 163,520 billion litres/year and 26,109 tons of CO2/ year respectively from 2013-19. IFC’s Advisory Services team also evaluated the “Rooftop solar feasibility’ in Matin Spinning Mills Limited and Jinnat Knitwear Limited and identified a total of 3190 KWp rooftop solar installation opportunity.
  • Collaboration through GEAR: Flamingo Fashions Limited joined the GEAR program through IFC’s partnership with Marks & Spencer in April 2019. Nine female operators received ten days of classroom training on technical skills and soft skills, along with on-the-job training experience as trainee supervisors at its factory. Its mid-level and floor-level managers also received various trainings on diagnostic and HR tools which can be used to identify, evaluate and retain female leadership at the factory. Within weeks of completing the GEAR trainings, all nine female operators received promotions to supervisory roles with an average increase in income of 42%. GEAR-trained female supervisors are reported to contribute to increased line-level productivity, decreased defect rates, reduced absenteeism, and other business benefits. Jinnat Knitwears Limited went through a similar training through the GEAR pilot between 2016-2018.
  • Collaboration through Corporate Governance (“CG”) program: Since November 2011, IFC CG Advisory services conducted a Corporate Governance Assessment (“CGA”) for Jinnat Fashion Limited, and in 2014 IFC was engaged in implementation of corporate governance recommendations and development of policy documents in seven companies of the Group including HTL.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation