IFC, a member of the World Bank Group, will provide textile manufacturer Soktas with a $45.8-million package. The package will benefit both Soktas and its subsidiary Soktas India to help the company upgrade its capital equipment and shift to higher value-added products.
The package will also enhance the company?s competitiveness and widen its export markets. The package will include long-term loans to Soktas Turkey and Soktas India, in addition to an equity investment in Soktas India. The package will enable the company to establish a 14 million meter greenfield manufacturing plant in Kolhapur, Maharashtra for producing yarn-dyed shirting fabric to serve the expanding markets in India and South-east Asia.
IFC in a release said its investment would also help the company carry out strategic investment initiatives, besides creating new jobs in India.
Soktas will use state-of-the-art technology at the new plant in Kolhapur, strengthen the textile industry, and help build skills of the local work force, with benefits for the broader economy. While Soktas would maintain the same capacity in Turkey, the group?s total capacity after project implementation is expected to be 28 million meters a year.
?The loan will allow us to become more competitive and enhance our ability to serve our clients better,? said Muharrem Kayhan, vice-chairman of Soktas. ?We are very pleased with our partnership with IFC on this project and look forward to working together on future projects,? added Hilmi Kayhan, another vice chairman of the company.
IFC regional director for South Asia Paolo M Martelli said, ?Apart from services sector companies, manufacturers from other emerging markets are investing increasingly in projects in India.?
