IFC to provide 45.8 million dollar package to Soktas

Kolkata, Nov 26 (UNI) IFC, a member of the World Bank Group, will provide a 45.8 million dollar financing package to Soktas, a textile manufacturer to help the company and its subsidiary Soktas India upgrade capital equipment and shift to higher value-added products.

The package will include long-term loans to Soktas Turkey and Soktas India, in addition to an equity investment in Soktas India, company sources said here today.

The financing package will enable the company to establish a 14 million meter greenfield manufacturing plant in India for producing yarn-dyed shirting fabric to serve the expanding markets in India and Southeast Asia.

According to the sources, IFC's investment will also help the company carry out its strategic investment initiatives, creating new jobs in India. Soktas will use state-of-the-art technology at the new plant in India, strengthen the textile industry, and help build skills of the local work force, with benefits for the broader economy.

While Soktas will maintain the same capacity in Turkey, the group's total capacity after project implementation is expected to be 28 million meters a year.

Paolo M Martelli, IFC Regional Director for South Asia, said, " Apart from services sector companies, manufacturers from other emerging markets are investing increasingly in projects in India.

IFC's strategy to support such investments has helped create more efficient and profitable globally competitive companies in the markets we serve. " UNI KDG SJC RN1946