RDIF and EBRD invest over USD100m in Cotton Way
The Russian Direct Investment Fund (RDIF) and the European Bank for Reconstruction and Development (EBRD) are making a joint investment in Cotton Way, a Russian commercial laundry and textile management company.
RDIF and EBRD will together invest RUB3.6bn (USD109m), with each party contributing 50 per cent.
The funds will be used by Cotton Way to continue to invest in facilities by constructing high efficiency laundry factories in key regions of Russia to further strengthen its market position and diversify its customer base.
Cotton Way provides commercial laundry and textile rental services to both local and national state organisations, as well as corporate organisations, including Russian Railways, Russia’s Ministry of Defence, hospitals, fitness clubs and hotel chains including those constructed for the Games in Sochi in 2014. At the end of 2013 Cotton Way built the country’s largest commercial laundry plant at the Sochi Olympic site.
Kirill Dmitriev, chief executive of RDIF, says: “Cotton Way uses the latest technology to enable companies to achieve efficiency gains and savings on their textile costs. The company is also well placed to capitalise on the growing demand for textile renting in Russia which currently accounts for less than 10 per cent of the overall textile care market in the country. Our investment will further enable Cotton Way to continue on its growth trajectory and improve the overall competitiveness of Russian businesses.”
Natasha Khanjenkova, the EBRD’s managing director for Russia, says: "The support of RDIF and EBRD will enable Cotton Way to significantly improve corporate governance standards, transparency and efficiency. This project is fully consistent with the Bank's Sustainable Resource Initiative, which prioritises the efficient use of water, energy and other resources."
Alexander Utkin, chief executive of Cotton Way, says: “This is a really significant event for Cotton Way - not only a serious endorsement of our company, but, above all, a commitment to the development of the young and dynamic textile rental industry which our company is trying to build in Russia. This investment will help significantly improve the industrial productive capacity of Russian companies who use Cotton Ways’ services.”
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