Project detail - Eswaran Brothers Exports (Pvt) Ltd

Who is our prospective customer?

Eswaran Brothers Exports (Pvt) Ltd is a third-generation family-owned enterprise established in 1963 and is headquartered in Colombo, Sri Lanka. It is a leading exporter of value-added teas in Sri Lanka for the past six decades, providing packaging solutions for a wide range of tea varieties. The company operates an integrated business model for teabag packaging, with in-house facilities for design, printing, and manufacturing, catering to both its own labels and third-party labels. EB primarily sources teas from auctions in Sri Lanka and India, producing tea products at their factories in these countries. These products are exported to over 40 countries through various sales offices worldwide.

What is our funding objective?

The proposed funding involves a USD 10 million secured term loan to Eswaran Brothers Exports (Pvt) Ltd, comprising a USD 7 million capex facility and a USD 3 million ‘green’ working capital facility. The capex facility will support the company’s expansion plans in Sri Lanka (USD 5 million) and India (USD 2 million), aimed at modernizing and expanding its tea blending, packaging, and printing operations. The expansion will focus on automation systems to enhance production capacity and efficiency, enabling the company to meet growing demand in both existing and new markets. The ‘green’ working capital facility will be used to procure certified teas, as well as sustainable printing and packaging materials. The funding is expected to qualify for 100% Reducing Inequality (RI) label under the Gender-Smart Agribusiness category, pending official 2X certification. The ‘green’ working capital facility qualifies for 100% green label, while the capex facility qualifies for 68% green label.

Why do we want to fund this investment?

By financing in Eswaran Brothers, FMO will directly reach a SMEs company in Sri Lanka in the tea sector, the backbone of the agricultural sector and local workforce. The tea sector is a vital lifeline for Sri Lanka’s economy and population, it is the country’s leading foreign exchange earner and employs directly or indirectly two million people. We consider this transaction to have a high impact, matching Building Prospect objectives based on: (i) through EB’s commitment to 2X challenge, the company’s objective is to promote females in (senior) leadership roles in the company to set a standard for the industry which is male dominated. (ii) The capex expansion is all geared towards machines that are best available technology and sustainable, e.g. capable of producing plastic free teabags. The working capital facility which we will be providing is classified as a is a ‘Green line working capital facility’ to purchase certified tea and paper products. (iii) EB will export products using locally available inputs therefore benefiting Sri Lankas’s balance of payments.

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
8/19/2025	USD 7.00 MLN