Good Fashion Fund Loans Indian Textile Maker $2 Million for Sustainable Treatment Plant

The Good Fashion Fund, an initiative created by Fashion for Good and the Laudes Foundation, is backing Indian textile manufacturer K.K.P Fine Linen’s efforts to make its operation more sustainable.

The fund gave K.K.P a $2 million loan to allow the home textile maker to install a biological effluent treatment plant in their newly acquired wet processing facility in Sipcot, Perundurai, Tamil Nadu. The effluent treatment plant will use a zero-liquid discharge system, which prevents wastewater from entering the environment while cleaning and recycling it for reuse in the plant.

The new facility will have an installed capacity for processing 100,000 meters of fabric per day. K.K.P handles wet processing—the pre-treatment, dyeing, printing and finishing of greige fabric, which is unprocessed before entering the facility.

According to the Good Fashion Fund, K.K.P plans to hire workers from the local community for the plant, while also launching gender and community development activities and broader environmental and social sustainability initiatives.

“We are beyond thrilled to partner with the Good Fashion Fund, as the $2 million investment in our upcoming wet processing plant enables us to meet the rising demand for sustainable practices in the textile industry,” said Sathesh Kumar Nallathambi, managing director, K.K.P Fine Linen. “This strategic collaboration represents a pivotal moment in our ongoing journey toward a more sustainable future. With this investment, we are making bold strides to reinforce our commitment to sustainable practices, driving both long-term impact and growth within our company.”

K.K.P, which exports bed linens and made up textile goods, has focused on sustainability initiatives to provide customers products that adhere to the latest regulations and expectations of environmental and social responsibility. The effluent treatment plant also will help the company save in chemical consumption, freshwater usage and material waste. The company already benefits from an in-house solar and wind energy plant, that provides 100 percent renewable energy, and has incorporated a number of other sustainability initiatives such as using biodegradable and recycled packaging.

The Good Fashion Fund, which is managed by Dutch investment firm Fount, provides long-term loans—along with technical, environmental and social expertise—to textile manufacturers in Asia, primarily in India and Bangladesh. In addition to K.K.P, the fund also is currently working with Pratibha Syntex and Sri Kannapiran Mills, both in India, and Progress Apparels and Epic Group in Bangladesh.

While the Good Fashion Fund has primarily supported apparel manufacturing companies, fund director Bob Assenberg said this investment allows them to expand farther into the home textiles sector, which is poised to grow by 6 to 8 percent in this fiscal year, according to Indian ratings agency Crisil Ratings.

“Through this partnership, we aim to accelerate and demonstrate the potential of sustainable manufacturing practices in the home textile segment,” Assenberg said. “KKPFL has proactively integrated sustainability in its strategy and operations and continues to strive for new heights as a young and upcoming bedding and made ups producer.”