AMSTERDAM — May 23, 2025 — The Good Fashion Fund, managed by FOUNT, has made an investment in Sharadha Terry Products Private Limited (“STPPL”) – a renowned Indian manufacturer and exporter of high-quality bed and bath products under the MicroCotton® brand from Metupalayam. The 1.75 million US Dollar loan will support STPPL’ investment in set-up of their new bath and area rugs unit (Sri Gugan Mills) in Metupalayam, Tamil Nadu. With this investment, the Good Fashion Fund is fully invested, and FOUNT is aiming to establish a follow-up fund (Good Fashion Fund 2.0) building on the successful track record, networks, lessons learned and methodologies of GFF.
(Left to Right) Sruthi Ramesh (Sr. Analyst, GFF), Vikram Krishna (MD, STPPL), Jayanth Kashyap B (Investment Lead, GFF)
The investment in Sharadha Terry Products by GFF will be towards the installation of a state-of-the-art tufting machine and accessories. The new rugs unit has an annual capacity of 4 million sq.mtr and will majorly produce dope dyed polyester bath rugs and cotton bath rugs, with other recycled fibres such under development for new products. Compared to conventional rug manufacturing units, STPPL will significantly reduce water consumption and eliminate the usage of hazardous chemicals typically used in conventional dyeing from its process supported by a dedicated effluent treatment plant (ETP) for the rugs unit that will recover up to ~98% of wastewater (estimated by STPPL) – positioning itself as of one of India’s few integrated and sustainable rug manufacturers with capacity above 4 million sq.mtr of production. The unit will be operated by workers from the nearby regions of Metupalayam, anticipated to create more than 200 jobs across male and female workers.
With India as a prominent home textile player internationally, STPPL is strategically positioned to leverage its existing brand and reputation with the business expansion and product diversification into bath and area rugs, increasing its revenue potential and improving overall resource efficiency. The company debuted its new rugs product line under ‘Sharadha Rugs’ at the Heimtextil show in January ’25 at Frankfurt for its international customers – becoming a one-stop shop for bed and bath products manufactured in the highest sustainability standards and regulatory requirements. STPPL draws majority of power through captive generation of power through its windmills (5.1 mw) and solar plant (10.1 mw).
Speaking on the partnership, Vikram Krishna, Managing Director of Sharadha Terry Products Private Limited, “We are proud to partner with the Good Fashion Fund in our journey to bring innovative and sustainable solutions to the global home textiles market. This investment enables us to expand our product portfolio into bath and area rugs while reinforcing our deep commitment to environmental stewardship and community development. At Sharadha, we believe that growth and responsibility go hand in hand — and with this support, we are building one of India’s most resource-efficient rug manufacturing units, powered by clean energy and operated by local talent.”
Bob Assenberg, Fund Director of Good Fashion Fund commented “We are elated to expand our presence in the home textiles segment with this investment in Sharadha Terry Products – being our final investment from the GFF. This partnership is a testament to the company’s commitment to sustainability and our goal as an impact fund to focus on deeper tiers of the textile industry. As an established company with rich legacy in the bath textile segment, Sharadha Terry continues to aim for new opportunities in the bath and area rugs segment as well. We look forward to collaborating towards demonstrating best practices in sustainable manufacturing for the textile industry.”
The Good Fashion Fund (GFF), is initiated by Fashion for Good and is a collaboration between Laudes Foundation, The Mills Fabrica and FOUNT complemented by Rabobank as lender to the Fund. The Fund provides long-term USD loans in addition to technical and environmental and social expertise to manufacturers in Asia, primarily India and Bangladesh. Financing is to be used to invest in impact equipment that deliver both economic growth and good fashion practice. The Good Fashion Fund has a blended capital structure with an actual fund size of USD 19 million. The Fund is managed by FOUNT, a leading impact investment firm from the Netherlands.
Current partners of the GFF also include K.K.P Fine Linen (India), Pratibha Syntex (India), Sri Kannapiran Mills (India), Progress Apparels (Bangladesh) and EPIC Group (Bangladesh).
Posted: May 27, 2025
Source: The Good Fashion Fund