Textile company Balaji has received Kes3.2 billion from the Norwegian Investment Fund (Norfund) and Ethos Mezzanine Partners 3, a closed-ended specialist credit fund to ramp up production capacity.
The two investors have contributed $12.5 million with some of the funds directed on sewing machines, helping expand production.
Part of the fund will be used to replace older washing machines with modern ones, increasing its manufacturing by 300 per cent.
Modernization will help the textile company cut electricity use by 20-30 per cent, water consumption (70 per cent) and chemical use (by 60 per cent).
Norfund East Africa Regional Director William Nyaoke said the investment seeks to create 6,000 new direct and 6,000 indirect jobs.
Balaji Group already employs over 12,000 people.
“We can make a significant impact by delivering on our mandate of facilitating job creation at scale in order to combat poverty,” he said.
In comparison to many Asian economies, Kenya's textile and clothing industries are underdeveloped.
There are currently more than 50,000 employees, most of them are women. Yet, there is still a lot of room for expansion.
On his part, Ethos Managing Partner Phillip Myburgh stated that they are excited to partner with the Balaji Group and Norfund to fund the next phase in its growth trajectory that spans 21 years since it was founded by Pankaj and Amit Bedi.
“This funding commitment also promotes the UN’s Sustainable Developments Goals 5 (gender equality), 6 (clean water & sanitation), 8 (decent work & economic growth) and 12 (responsible consumption and production),” he added.
Balaji Group Chairman, Pankaj Bedi noted that the firm is grateful for the opportunity to have worked with Norfund and Ethos Mezzanine Partners, whose core values are developing and improving people’s lives, which is directly aligned with what Balaji’s endeavour is too.
In addition to the capital injected, the funders will also support the company’s environmental, social and governance standards.
