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#Sustainability

Good Fashion Fund partners with K.K.P Fine Linen for new wet processing unit

The Good Fashion Fund, the Laudes Foundation and the Fashion for Good initiated fund managed by FOUNT, has made an investment in K.K.P Fine Linen Private Limited (“KKPFL”) – a leading Indian manufacturer and exporter of bed linen and made-up products from Namakkal. The 2.0 million US Dollar loan will support K.K.P’ investment in the installation of an Effluent Treatment Plant (ETP) in their upcoming wet processing unit in SIPCOT, Perundurai, Tamil Nadu.

The investment in K.K.P Fine Linen will be towards the installation of a state-of-the-art biological effluent treatment plant (ETP) with a Zero Liquid Discharge (ZLD) system. The ETP will be part of the newly acquired griege fabric process unit in SIPCOT (Perundurai) with an installed capacity of 100,000 metres per day. The workers will be hired majorly from local communities, while gender and community development activities will be undertaken by the company alongside broader environmental and social sustainability initiatives.

With India becoming a prominent home textiles market for international and domestic brands, KKPFL is poised to take advantage of the momentum by backward integrating the processing operations, improving efficiency in manufacturing and increasing their revenue potential. The company would be able to cater to the needs of its customers by having end-to-end control of its products manufactured in the highest sustainability standards and regulatory requirements.

The ETP (and the processing unit) is expected to demonstrate positive savings, especially in the areas of chemical consumption, freshwater usage and material waste reduction in-line with stringent local pollution control norms. KKPFL (and KKP Group) also benefits from 100% renewable energy sourcing (solar and wind) of which close to 40 megawatts is from their in-house plant.

Speaking on the partnership, Sathesh Kumar Nallathambi, Managing Director of KKP Fine Linen Privated Limited, “We are beyond thrilled to partner with the Good Fashion Fund as the 2 million USD investment in our upcoming wet processing plant enables us to meet the rising demand for sustainable practices in the textile industry.

This strategic collaboration represents a pivotal moment in our ongoing journey toward a more sustainable future. With this investment, we are making bold strides to reinforce our commitment to sustainable practices, driving both long-term impact and growth within our company.

As leaders in sustainability within the home textiles manufacturing sector, this funding propels us forward. It ensures that we not only meet the demands of today but also lead by example in the sustainable fashion movement.”

Bob Assenberg, Fund Director of Good Fashion Fund commented “We are excited to venture into the home textiles segment in India through this investment in K.K.P Fine Linen, based in Namakkal. Through this partnership, we aim to accelerate and demonstrate the potential of sustainable manufacturing practices in the home textile segment.

KKPFL has proactively integrated sustainability in its strategy and operations and continues to strive for new heights as a young and upcoming bedding and made-ups producer. This partnership marks an important milestone for KKPFL and GFF.”

The Good Fashion Fund (GFF), is initiated by Fashion for Good and is a collaboration between Laudes Foundation, The Mills Fabrica and FOUNT complemented by Rabobank as lender to the Fund. The Fund provides long-term USD loans in addition to technical and environmental and social expertise to manufacturers in Asia, primarily India and Bangladesh. Financing is to be used to invest in impact equipment that deliver both economic growth and good fashion practice. The Good Fashion Fund has a blended capital structure with an actual fund size of USD 19 million. The Fund is managed by FOUNT, a leading impact investment firm from the Netherlands.

Current partners of the GFF also include Pratibha Syntex (India), Sri Kannapiran Mills (India), Progress Apparels (Bangladesh) and EPIC Group (Bangladesh).

www.goodfashionfund.com



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