The Good Fashion Fund (GFF), managed by FOUNT, has successfully validated the impact of its second investment in India, a USD 2.5 million long-term loan extended in 2023 to Sri Kannapiran Mills Limited (SKML). The funds were utilized to modernize critical equipment in Tier 2 and Tier 3 factories, including KG Naidu Mill, Balaji Mill, and a denim unit (KG Fabriks).
Recent evaluations in Q1 and Q2 2025, including independent monitoring by Bureau Veritas, Fairwear Foundation, GlobalCAD, and adelphi Consult, confirmed significant positive results. These were documented in a newly released, in-depth case study, offering one of the first publicly validated examples of sustainable transformation at the Tier 2 and Tier 3 level in India’s textile industry.
Measurable Impact Across ESG Dimensions:
Environmental Gains:
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Up to 59% energy savings (886,439 kWh/year) from modern spinning machines
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95% reduction in cotton waste, equating to 4,756 kg saved annually
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Around 1,272 tons of CO₂ avoided from upgraded machinery
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Shift to cleaner energy: SKML’s mix now includes 58.1% solar and 20.7% wind (from 32.6% and 18.1% respectively)
Social Improvements:
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Safer working conditions through automated doffing processes
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Implementation of grievance redressal, health & safety protocols, and environmental governance
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Improved data-driven oversight across production processes
Financial Benefits:
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Estimated USD 140,000 saved annually in spinning due to reduced energy and waste
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Approx. USD 115,000 saved yearly from improved weaving productivity
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Monthly fabric output increased to 220,000 meters, enabled by added air jet looms
Technology Modernization:
SKML’s upgraded infrastructure includes BD 480 rotor spinning lines, auto doffers, high-speed winders, and air jet looms—replacing legacy systems over 25 years old. The improvements significantly enhanced operational efficiency while reducing manual labor and environmental footprint.
Industry Leadership & Global Relevance:
Speaking on the transformation, Srihari Balakrishnan, Managing Director of SKML, emphasized: “Without the Good Fashion Fund, we may not have moved forward with these upgrades so confidently… We’re now seeing benefits in cost, quality, systems, and worker well-being.”
Bob Assenberg, Co-Founder of FOUNT and Fund Director at GFF, added: “Sri Kannapiran Mills shows that transformation is possible with the right mindset and context-adapted solutions. Their example directly informs the design of Good Fashion Fund 2.0, aiming to go deeper into the supply chain.”
The case study, created with support from GlobalCAD and adelphi Consult, serves as a blueprint for brands, investors, and ecosystem players seeking credible impact at the factory level. It underscores how catalytic financing, paired with technical support, can accelerate sustainability goals—especially in undercapitalized SME factories often left out of brand-led initiatives.
