Vert® Company - Sustainable production of clothing made from organic cotton in Vietnam
Pole Group, a Dutch textile company, will set up a factory in Vietnam with a local partner to produce clothing from eco-cotton.
The Pole group has the ambition to become the leading company as supplier of sustainable produced clothing made from organically grown raw materials. In order to guarantee a sustainable supply chain from raw material to finished product, subsidiary VERT®Company will set up a new factory in Vietnam, together with experienced local partner MAYHAI, to manufacture clothing made from organic cotton. The Dutch government finances part of the investment
Facts
2009
| Two years ago: | |
| Last year: | |
| This year (forecast): | 360,000 |
| Year 2 (forecast): | 7,100,000 |
| Year 3 (forecast): | 8,860,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | -48000 |
| Year 2 (forecast): | 375,000 |
| Year 3 (forecast): | 465,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 400 |
| Year 2 (forecast): | 400 |
| Year 3 (forecast): | 750 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 1,855,000 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 340,000 |
| Total finance needed (US$) | 2,195,000 |
How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.
| Own Contribution in cash | 500,000 |
| Loans (debt) | 650,000 |
| Share capital that you seek from investors (equity) | 0 |
| Other sources | 1,045,000 |
| Total finance needed (US$) | 2,195,000 |
The Business
Manufacturer of sustainable produced clothing made from organically grown cotton.
A guaranteed sustainable production of clothing made from organically grown cotton with a guaranteed good quality.
A new factory is being built together with an experienced partner, MAYHAI, with a proven track record of high quality deliveries to the European and US market. The factory will be SA 8000 en ISO 14000 certified: it will qualify as environmental friendly and comply with international social standards. NGO Solidaridad will issue the SA 8000 certificate. Dutch company VERT Company BV will own 52% of the shares in the Vietnamese venture, MAYHAI 48%.
Customers (retailers, clothing brands and suppliers to governments) are under increased pressure to supply clothing which have been produced in conformity with high sustainability standards. VERT®Company will be able to guarantee sustainable clothing by controlling the full supply chain. Sales will be done from existing offices of the Pole group in The Netherlands, Hongkong and Vietnam. On top of that, existing clients of MAYHAI will be targeted.
The largest European and US based retailers and suppliers of major clothing brands will be targeted directly from Vietnam or by sister company SOOON in Hongkong. Smaller textile companies, suppliers of company clothing and suppliers to governmental organisations in Europe will be targeted through sister company PPAKS in The Netherlands.
There are many companies active as supplier and manufacturer of clothing.
VERT®Company will be able to guarantee sustainable produced clothing by controlling the whole supply chain.
As an innovation in the textile industry, VERT®Company will be able to guarantee sustainable produced cotton clothing. Cooperations with NGO's like Solidaridad and control over the whole supply chain will provide for full transparency and for all necessary certifications regarding environment and social affairs.
Growth of the business will be ensured by cooperating with strong partners like NGO Solidaridad and memberships of industry groups like BSCI (Business Social Compliance Initiative) and Organic Exchange. The market outlook is positive: demand is larger than supply and customers of the Pole group are under increased pressure to guarantee sale of sustainable clothing. New production facilities will be set up to meet this growing demand.
The Entrepreneur & Management
CEO Herman Poelmann (58) has 35 years experience in the textile industry, including 30 years in Asia. Other key players in the Pole group are sales director Willem Broekhoven (43) and SOOON manager Guido Brantjes (43), based in Shanghai. Alex Falter (27), protects the interests of the group in Vietnam. MAYHAI, founded in 1986 and privatised in 2005, owns 3 factories and operates an industrial laundry in a jv with a Korean party.
The long, diversified experience of the management and partner MAYHAI in the business is a major asset for the company. MAYHAI has experience setting up and operating textile factories. Further, they know what European and US based textile companies expect. The management of the Pole group has a long track record in the international textile industry in all kind of fields like sales, branding and purchasing.
Alex Falter works full time for VERT®Company in Vietnam. All other management team members are full time employees of the Pole group.
Development
Social and environmental awareness are very important to the company. By using organically grown cotton fibers as raw material and by using environmentally friendly production methods, for example while dyeing the cotton, an ISO 14000 certificate will be received. Further in close cooperation with Solidaridad, SA 8000 certification regarding decent working conditions will be obtained.