Press Release from 2020-07-08 / DEG
DEG finances manufacturer of electrical and electronics devices in Bangladesh
DEG is providing Walton Hi-Tech Industries Limited (Walton), one of the leading manufacturers of electrical and electronics household devices in Bangladesh, with a long-term loan of EUR 20m. The company plans to use these funds to invest in capital machineries and equipment, to modernise its 19 production facilities and to expand its range of products. The investments will create some 360 direct jobs and a further 1,000 in the sales network.
Long-term loan for Walton Hi-Tech Industries Limited
Walton produces above all “white goods”, i.e. refrigerators, freezers, air conditioning, TVs, electrical and electronics household devices. The company has high market shares (for instance, around 75 percent of the refrigerator market at present) as well as its own distribution network.
Bangladesh’s growing middle class is generating rising demand for electrical household goods. With its range of energy-efficient products, Walton plays its part in meeting this demand while minimising the strain on the environment. In this regard, the company launched new models for 25 top-selling household devices that reduced their energy requirements by over 50 percent on average.
Modernisation, expansion and almost 1,400 new jobs
As Turan Caglayan, head of DEG’s Corporates/Project Finance/Funds Europe/Asia division, comments: “Walton and DEG have already been working together for many years. With the current financing, we are helping the company to continue its growth course. And thanks to various DEG business support services, Walton is well prepared for this step. It also fits with DEG’s strategy in that it helps to develop the local market.”
S M Ashraful Alam, Managing Director at Walton, adds: “We consider and value DEG as a longstanding partner who has not only provided us with long-term financing but also with technical assistance to improve in areas like corporate governance and working capital management as well as helping us to meet international environmental and social standards.”
Particularly in the current coronavirus pandemic, DEG is giving Walton the full benefit of its Business Support Services. Safety concepts are being drawn up and implemented for when the factories open again. Bangladesh is one of the least developed and most densely populated countries in South Asia and is therefore particularly at risk from the coronavirus pandemic, which has taken its toll above all on the textile sector. The country is already struggling with high unemployment and it is difficult for its healthcare system to be able to cope with widespread infection.