Himatsingka Loan

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Himatsingka Seide Limited (“HSL” or “the Company”) is one of the leading vertically integrated textile enterprises in India (https://www.himatsingka.com/) and operational since 1985. HSL has full range of capability in textile design, development, manufacture, and distribution with a suite of textile products ranging from made-up bedding products, terry towels, drapery and upholstery fabrics. With over 15 brands, the Company has amongst the largest portfolio of home textile brands, catering to its markets in about 32 countries across North America, Europe and India-Asia. Going forward, the Company intends to add more brands as part of its long-term growth strategy and enhance its market share in branded home textiles segment. HSL’s own & licensed brands (Pimacott, Organicott and Home Grown Cotton) are also equipped with the DNA-tagged technology which provides its clients with the ability to trace raw materials and ensure purity of cotton across supply chain.HSL operates four integrated manufacturing plants across two locations in the state of Karnataka in India. The installed capacities for manufacturing bedding and bath products, drapery and upholstery fabrics, and fine-count cotton yarn are amongst the largest in the world.  Key details of the plants are summarized below:(i) Himatsingka Linens Division has a bed linen manufacturing capacity of 61 million meters per annum (MMPA) located in integrated Hassan campus at Karnataka. The facility offers complete bed ensembles including sheet sets, pillowcases, duvets, comforters, quilts, etc. This plant is operational since 2007.(ii) Himatsingka Terry Division has a terry towel plant with a manufacturing capacity of 25,000 tons per annum (tpa), located in integrated Hassan campus at Karnataka. The product portfolio includes bath towels, mats and rugs, bathrobes, and accessories.(iii) Himatsingka Fiber Division has set-up the world’s largest cotton spinning plant under one roof with an installed capacity of 211,584 spindles for manufacturing ultra-fine-count yarn, located in integrated Hassan campus at Karnataka.(iv) Himatsingka Seide Limited’s flagship drapery and upholstery unit of 2 MMPA capacity is located in Doddaballapur, near Bengaluru in Karnataka, India. This plant is operational since 1985.IFC proposes a loan investment of up to $ 69 million to HSL.  The proceeds will be utilized towards part financing HSL’s terry towel plant capacity expansion through debottlenecking, implement specified decarbonization actions and to refinance long term debt (“the Project”). The debottlenecking is expected to increase HSLs terry towel production capacity by 60% to 40,000 tpa at its Terry Division located at HSLs integrated Hassan Plant campus (Plant co-ordinates: 12°57'21.9N 76°05'51.6E) in Karnataka. The proposed debottlenecking based expansion includes neither additional land parcel requirements nor any major building infrastructure to be developed.  IFC does not have any past investment experience with the Company.