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India—IFC Supports Textile Plant Expansion in India


In Washington, DC:
L. Joseph

Phone: +202 473 7700 - Fax: +202 974 4384

Email:  
ljoseph@ifc.org


Washington DC, June 30, 2003—The International Finance Corporation, the private sector arm of the World Bank Group, will provide a rupee loan equivalent to $17.5 million to an integrated Indian textile company, Alok Industries Limited.  The Mumbai-based company has texturizing, weaving, knitting, processing, garmenting, and home textile operations.

The loan is part of a financing package that will allow Alok Industries to expand and modernize its facilities in response to the strong demand from domestic and international customers. The $86.9 million project also involves improving operational efficiencies and upgrading environmental and social standards. The company will use the financing package to complete its state-of-the-art processing plant at Vapi in Gujarat and add various texturizing, weaving, and knitting facilities in Maharashtra and the Union Territory of Dadra and Nagar Haveli. In addition, the project includes a provision for working capital  and will enable Alok Industries to refinance some of its long-term debt.


“This transaction is an example of how IFC can apply its experience in assisting a niche company with proven business expertise and excellent management in the emerging markets,” said Mr. Richard Ranken, director for Global Manufacturing and Services at IFC.


Mr. Dimitris Tsitsiragos, IFC director for South Asia, added, “This investment is part of our strategy to help innovative Indian companies expand into global markets, creating export earnings and generating employment.”



The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.