Project detail - ANANTA APPARELS LTD

ANANTA APPARELS LTD

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Who is our client

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.

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 we fund this project

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
8/6/2020 EUR 0.05 MLN
Website client
http://www.ananta-bd.com/
Region
Asia
Country
Bangladesh
Sector
Infrastructure, Manufacturing and Services
Signing date
5/25/2013
Total FMO financing
USD 6.25 MLN
Fund
FMO
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+