Himatsingka Loan (IFC-46454)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Karnatka- Hassan and Doddaballapur
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 12, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
HIMATSINGKA SEIDE LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 69.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 85.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 31, 2023

Disclosed by Bank Mar 24, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC documents, the proposed investment is a loan 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.

 

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total Project cost is approximately US$85 million. IFC will provide a financing package of upto US$69   million equivalent. The financing package will include (i) INR denominated Non-Convertible Debenture (NCD) of up to INR 4,600 million (approximately US$56.5 million) and (ii) and Foreign Currency Convertible Bond (FCCB) of up to US$12.50 million. 

Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Company was founded in 1985 by Dinesh Kumar Himatsingka. It is currently listed on both Bombay Stock Exchange and National Stock Exchange. The majority ownership of HSL is with the Himatsingka family (“the Sponsors”) with about 48% shareholding, and the balance is held by public and institutional shareholders.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Himatsingka Seide Limited (“HSL” or the “Company”) is one of the leading vertically integrated home textile manufacturing companies that designs, develops, manufactures and distributes a suite of home textile products. 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. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Himatsingka Seide Limited
Dilip Panjwani
Executive Vice President & CFO – Strategic Finance
+91-80-42578000
dilip.panjwani@himatsingka.com
10/24 Kumara Krupa Road, High Grounds, Bengaluru – 560 001 Karnataka, India
https://www.himatsingka.com/

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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