Kannapiran Mills Receives $2.5mn Sustainability Initiative Loan
The Good Fashion Fund (GFF) along with other like-minded organisations has invested US $2.5 million in Sri Kannapiran Mills Limited (SKML), which is an Indian producer of cotton yarn and sustainable denim fabrics.
The loan will help support Kannapiran Mills’ investment in replacing and expanding of key sustainable equipments in two of their spinning factories KG Naidu Mill and Balaji Mill and also a Denim fabric weaving & processing factory named KG Fabriks.
The investment in Sri Kannapiran Mills will replace legacy equipment and add key machinery across the spinning and post-spinning processes, including auto blenders, high speed rotor spinning machines, auto doffers for existing ring frames and high-speed winding machines.
Within the denim weaving and fabric production process, the investment will add capacity to the existing airjet looms and replace fabric Singeing equipment.
“This will enable SKML to meet the manufacturing demands of its clients and support the company on scaling their holistic sustainability approach and become more competitive in the global supply chain as brands adapt to upcoming regulations and move towards more stringent sustainability standards,” GFF said in a press release.
GFF added, “Significant positive savings are expected as a result of the planned modernisation, especially in the areas of energy consumption and material waste reduction – subsequently expected to derive net positive economic savings over the duration of the partnership with the GFF.”
“We are delighted to be working with Good Fashion Fund and this investment helps us dig deeper into sustainable practices. The positive impact investment will help our company nurture growth and make it stronger,” Srihari Balakrishnan, MD of Sri Kannapiran Mills said.
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 delivers both economic growth and good fashion practice.
Current partners of the GFF also include Pratibha Syntex, a vertically-integrated ‘farm-to-fashion’ textile and garment producer in India and Progress Apparels, a ready-made garment producer in Bangladesh.