The Good Fashion Fund (GFF) has made its final investment—USD 1.75 million—into Sharadha Terry Products Pvt. Ltd. (STPPL) to support the setup of a sustainable bath and area rugs unit, Sri Gugan Mills, in Metupalayam, Tamil Nadu. The move marks GFF’s full capital deployment and sets the stage for a follow-up fund, Good Fashion Fund 2.0.
The investment will enable the installation of a state-of-the-art tufting machine, with production capacity of 4 million sq. meters annually. The unit will primarily manufacture dope dyed polyester and cotton bath rugs, with innovations in recycled fibers underway. STPPL will also install a dedicated ETP that recovers up to 98% of wastewater, eliminating harmful chemicals typically used in dyeing, and reinforcing its leadership in resource-efficient home textiles.
Sharadha Terry, known globally for its MicroCotton® brand, is expanding its eco-conscious portfolio with ‘Sharadha Rugs’, introduced at Heimtextil 2025 in Frankfurt. Powered entirely by renewable energy—5.1 MW wind and 10.1 MW solar—the new unit will create 200+ local jobs, promoting gender equity and community development.
Vikram Krishna, MD of STPPL, said: “We are building one of India’s most sustainable rug units. With GFF’s backing, we are strengthening our commitment to innovation, clean energy, and social responsibility.”
Bob Assenberg, Fund Director at GFF, called the partnership a showcase of best practices in sustainable textile manufacturing and noted STPPL’s leadership in deeper tiers of the industry.
GFF, managed by FOUNT, was launched by Fashion for Good and supported by Laudes Foundation, The Mills Fabrica, and Rabobank, investing in impact equipment across Asia. Other GFF partners include Pratibha Syntex, K.K.P Fine Linen, Sri Kannapiran Mills (India) and Progress Apparels, EPIC Group (Bangladesh).
Sharadha Terry has led the home textile industry in India for over 90 years, setting benchmarks in zero liquid discharge, 100% renewable energy, and certifications like Made in Green, GRS, ZDHC, and FSC. The company continues to redefine sourcing, packaging, and workplace wellbeing, aiming for Net Zero by 2026.
