Soktas India setting up plant with IFC funding

New Delhi: International Finance Corporation (IFC), the World Bank’s private sector lending arm, said on Monday it would invest $45.8 million in Turkish textile maker Soktas and its Indian subsidiary, Soktas India.

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

The $45.8-million investment includes long-term loans to Soktas Turkey and Soktas India, in addition to an equity investment in Soktas India, it added.

According to the release, Soktas would use the proceeds to establish modern at the new plant proposed in Maharashtra, 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.