Project detail - Eswaran Brothers Exports (Pvt) Ltd

Who is our customer?

Established in 1963, Eswaran Brothers Exports (Pvt) Ltd (EBE) is a third‑generation, family‑owned enterprise and one of Sri Lanka’s largest exporters of value‑added teas. EBE operates an integrated business model for tea blending and teabag packaging, with in‑house design, printing, and manufacturing facilities serving both its own and third‑party brands. Its teas are primarily sourced from auctions in Sri Lanka and India, processed at EBE’s factories in these countries. The company exports to over 40 countries through its global sales offices.

What is our funding objective?

The financing comprises a USD 10 million term loan to EBE, consisting of a USD 7 million capex facility and a USD 3 million “green” working capital facility. The capex facility supports expansion in Sri Lanka (USD 5 million) and India (USD 2 million), focusing on the modernization and expansion of tea blending, packaging, and printing operations. The capex primarily targets automation systems to enhance production capacity and efficiency, enabling the company to meet growing demand in existing and new markets. The “green” working capital facility is used to procure certified teas, as well as sustainable printing and packaging materials.

Why do we fund this investment?

By financing EBE, FMO directly supports an SME in the tea sector and its local workforce. The tea sector is a vital pillar of Sri Lanka’s economy, serving as the country’s leading foreign exchange earner and providing direct or indirect employment to approximately two million people. The transaction has high impact and strong alignment with Building Prospects objectives, based on the following factors: (i) Through its commitment to the 2X Challenge, the company aims to promote women into (senior) leadership positions, setting a benchmark in a traditionally male-dominated industry. (ii) The capex expansion focuses on best-available and sustainable technologies, including machinery capable of producing plastic-free teabags, while the working capital facility is classified as a “green line” to finance the purchase of certified tea and paper products. (iii) EBE exports value-added products using locally sourced inputs, thereby contributing positively to Sri Lanka’s balance of payments. Green Label: 100% of FMO’s working capital facility and 68% of its capex facility are labelled as Green, as they support activities contributing to climate change mitigation and pollution prevention (SDG 13), in line with FMO’s green finance methodology. RI Label: 100% of FMO’s investment is labelled as Reducing Inequalities, as it supports Gender-Smart Agribusiness, contributing to SDG 10 and SDG 5.

What is the Environmental and Social categorization rationale?

The E&S risk is classified as Category B due to the limited potential adverse E&S risks and/or impacts from the company’s activities, which can be addressed through relevant mitigation measures. Applicable IFC Performance Standards (PS) include: PS 1 (assessment and management of E&S risks and impacts), PS 2 (labor and working conditions), PS 3 (resource efficiency and pollution prevention), PS 4 (community health, safety, and security), and PS 6 (biodiversity conservation and sustainable management of living natural resources). The company will acquire land only in industrial zones in Sri Lanka, and there is no indication that its operations will affect Indigenous Peoples or cultural heritage sites. Therefore, PS 5 (Land Acquisition and Involuntary Resettlement), PS 7 (Indigenous Peoples), and PS 8 (Cultural heritage) are considered not applicable.

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Date	Total FMO financing
3/31/2026	USD 3.00 MLN