Dutch fund makes first investment in Bangladesh

Good Fashion Fund (GFF), a Netherlands-based investment fund, is going to provide $1 million to Progress Apparels Ltd to set up a washing and treatment plant.

This is the first investment of the Dutch fund in Bangladesh.

The investment will support Progress Apparel, a part of Hong Kong-based PDS Limited, to set up a modern in-house washing plant at the Adamjee Export Processing Zone (EPZ) in Narayanganj, Good Fashion Fund said in a press release.

The washing plant will be equipped with state-of-the-art washing, drying and hydro machinery selected for its efficient use of water and chemicals.

GFF's investment generates savings in water- and chemical usage compared to conventional machinery and promotes supply chain traceability and transparency as washing is no longer outsourced, and the factory is capable of monitoring water, energy, and chemical usage and the social well-being of its employees, the press release said.

The GFF is a collaboration among the Laudes Foundation, The Mills Fabrica, and FOUNT and is complemented by Rabobank as the lender to the fund.

Established in 2017, Progress Apparels is a readymade garment producer and makes woven bottoms for popular international brands and retailers.

Speaking on the investment, Pallak Seth, executive vice chairman of PDS, said PDS has more than two decades of expertise in the apparel value chain and established itself as a favoured collaborator for more than 200 prominent global retail brands.

"As a socially responsible corporate entity and a trusted partner of retailers, we are dedicated to upholding our obligations to both our customers and the environment. Our association with the Good Fashion Fund serves as a testament to PDS's commitment to collaborating with esteemed institutions that prioritize environmental sustainability and circularity."

Sanjay Jain, group chief executive officer of PDS, said: "This investment in the wash plant has not only empowered Progress Apparels to enhance their manufacturing capabilities but also gained the advantage of Good Fashion Fund's knowledge in sustainable practices and cutting-edge technology implementation."

"This investment allows us to leverage their expertise for the betterment of our operations and overall sustainability goals."

Bob Assenberg, fund director of the GFF, said, "We are excited to announce our first investment in Bangladesh and to be associated with a sustainability-oriented manufacturer such as Progress Apparels."

"This partnership demonstrates that sustainability can go hand in hand with economic savings and that it is essential for transforming the apparel supply chain. We hope industry stakeholders will make concerted efforts in making such investments more accessible in Bangladesh."

Anita Chester, managing director of Laudes India, said sustainable manufacturing practices and processes are the need of the hour.

"They are especially critical in key manufacturing regions like Bangladesh where support to producers is critical to showcase the immense opportunity to decarbonise while ensuring a socially responsible transformation."