ANANTA APPARELS LTD
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Ananta Apparels Limited (AAL) established in 1992, is one of the larger apparel manufacturers in Bangladesh with over 13,000 employees. The Company mainly focuses on denim jeans, children's playwear and cargo. AAL customers include the large retailers including GAP, H&M, C&A, Jack & Jones and Next. AAL is one of the 8 platinum suppliers (top supplier with preferred status) for H&M and is also the preferred denim vendor for GAP.. A new line of business will be men's classic suits for which they have a 5 year contract with H&M. The total monthly production capacity is 1.8 mln woven bottoms.
What is our funding objective?
The project envisions setting up a state of the art factory as a relocation and expansion of the existing production capacity for woven bottoms. The existing production in downtown Dhaka (which has been there for over 20 years) will be slowly phased out and relocated due to capacity constraints and old building/machinery.The factory will specialize in the production of children's wear, jeans, chinos and cargoes and will comprise of 50 sewing lines, 30 washing machines and embellishment capabilities.
Why do we fund this investment?
FMO has granted the loan as the company is reputable and experienced sponsors with a 20 year track record in the industry. It has sound financials with conservatively leveraged balance sheet and healthy margins. Its long-term relationships with major brands like H&M and GAP assure its cash flow. FMO is also happy with the involvement of DEG, IFC and Frontier Fund, that help to professionalise the company on corporate governance, operational and E&S.
More investments
| Date | Total FMO financing |
|---|---|
| 7/14/2021 | EUR 0.05 MLN |
- Website customer/investment
- http://www.ananta-bd.com/
- Region
- Asia
- Country
- Bangladesh
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 5/25/2013
- Total FMO financing
- USD 6.25 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+