Gava Sanitary Ware

completed

The proposed investment involves the construction of a modern green-field turn-key facility for the production of vitreous china ceramic sanitaryware. The annual capacity is 350,000 pieces. The proposed project would meet the needs of a big market growing at a rate of more than 15% annually, and would capitalize on: (i) the sponsors'' established distribution network through which it is already selling 200,000 pieces of sanitaryware annually (60% of Gava''s proposed capacity), and (ii) internationally competitive production costs due to cheap labor, raw materials and energy. Moreover, Gava would be able to share overhead costs with Al-Amir, thus providing the company with additional competitive advantage.Development Impact: The project will result in roughly 220 new jobs along with training in new skills and technologies.IFC Role: Local term loans being scarce, IFC will provide much needed long-term financing to this company for the proposed project. Moreover, IFC''s input will substantially assist the company in negotiating with equipment suppliers; in addition, IFC''s review of technical agreements will ensure that the company obtains appropriate technical support after plant commissioning. IFC''s participation will also ensure adherence to strict environmental, social and corporate governance standards.