Hamza Textiles

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 DBL Group (“DBL” or the “Group”) started in 1991 as a vertically integrated apparel and textile manufacturing and exporting conglomerate in Bangladesh (http://www.dbl-group.com/). DBL’s apparel and textile operations cover the entire value chain of the knitted garment manufacturing process including cotton spinning, apparels and knitting, fabric dyeing and finishing, printing, embroidery, sewing and packaging. DBL’s main buyers include H&M, C&A, Puma and Asda. DBL’s facilities are also a part of “Better Work Bangladesh” and undergo regular audits. (Better Work is a joint IFC-ILO initiative to improve working conditions and respect of labour rights for workers and boost the competitiveness of apparel businesses.) DBL is an existing IFC client; the publicly disclosed ESRS for the previous project available at: https://disclosures.ifc.org/#/projectDetail/ESRS/31357. DBL is now undertaking a backward integration and energy efficiency program through expanding its finishing capacity under a group company viz. Hamza Textiles Limited (“HTL” or the “company”) from 23 t/day to 103 t/day thereby increasing the Group’s finishing capacity from ~100 t/day to ~180 t/day (the “project”). Total project cost is estimated at ~US$ 44 million. The proposed IFC investment is an A Loan of up to US$ 11.35 million and a US$ 11.35 million loan from the IDA PSW Blended Finance Facility (BFF) as described in the Blended Finance Section of the Summary of Investment Information (SII).  The machines for the project will be installed in a new building within the same complex. The project will create approximately 930 new direct jobs for the local people. Additional utilities specifically for the project will include gas-based power generators (total capacity:6MW/h), boilers, water treatment plant (WTP), air compressors etc. The construction of the project building is expected to complete in March 2021 and the new facility will be operational by late 2021. Raw materials (cotton and fibers) are mainly imported from suppliers from USA, Australia and India and locally sourced. DBL is certified by Global Organic Textile Standard and Better Cotton Initiative. DBL will strengthen the supplier evaluation program by documenting DBL’s expectations from suppliers (both at the time of start of business as well during the relationship), including additional aspects like prevention of forced labor, structural safety etc. and improving the monitoring and follow-up procedures to ensure adequate improvements on these issues. HTL has been established since 2004 for fabric dyeing and finishing process in the industrial complex called Mymun in Kashimpur, Gazipur (around 40 km north from Dhaka) where DBL’s other dyeing and printing companies are located, i.e., Color City and Mymun Textiles Limited (fabric dyeing and finishing) and DB Tex Limited (fabric printing).HTL has been cooperating with IFC through 'Partnership for Clean Textile' (PaCT) program. HTL also underwent an in-depth Cleaner Production Assessment in 2013 and 2018 and invested in resource efficient technology and management practices, resulting in reduction in water consumption and greenhouse gas emissions.