Grameen Trust partners with Otto group to set up clothing factory

Microfinance Focus, November 13, 2009: Grameen Trust of Bangladesh has partnered with the Otto Group, a German conglomerate, to set up a socially responsible clothing manufacturing company, said a statement.
The for-profit venture called Grameen Otto Textile Company will build a factory in Dhaka, Bangladesh, to produce clothing for export under socially and ecologically sustainable conditions, said the Otto Group.
The aim of the project is to provide quality employment for the poor of Bangladesh, with 500 to 700 to be employed initially. The profits will be re-invested in the company to expand the factory and to support the community through several initiatives including healthy lunches for the employees as well as sanitation and health care facilitates.
A day-care center for children offering pre-school classes and further education for adults will also be provided. A Grameen Otto Trust will be formed to oversee these projects, said the release.
Professor Muhammad Yunus said on the occasion, “Poor people do not ask for charity, as charity is not a solution for poverty. They want to work in order to earn their livelihood. The Grameen Otto Textile Company creates work for the poor.” He hoped that it would serve as an example on how social business can help combat poverty.
The Grameen Trust, a non-profit entity within the Grameen Group that includes microfinance services provider Grameen Bank and manages several social business ventures worldwide. Otto Group, established in 1949 is based in Hamburg, Germany. It comprises 123 retail and financial services companies across Europe, North Amercia and Asia.

Related Posts:

• Alibaba Group donates $5 million to Grameen Trust for China initiative
• Grameen America reaches 1,000 borrowers: Yunus
• Uzbekistan provides micro loans to 128 women entrepreneurs
• Grameen Trust, Carlos Slim Foundation launch Mexico’s $45 million microfinance program
• Grameen Trust signs MoU with UNHCR to provide microcredit to refugees
• Grameen Koota NBFC-Microfinance receives over 27.5 crore equity funding
• US to honour Microfinance pioneer Dr Muhammad Yunus with Freedom medal
• New Microfinance Initiative to track poverty reduction in Mali, Senegal

© 2009, Microfinance News. All rights reserved. 2008-09