Sidbi to set up Rs 50 cr fund for fashion industry

In a bid to provide assistance to fashion designers, the Small Industries Development Bank of India (Sidbi) will create a Rs 50 crore corpus to lend to the sector.

The Fashion Design Council of India (FDCI), organisers of the ongoing Lakme India Fashion Week, will sign an MoU with Sidbi for this purpose, FDCI Executive Director Vinod Kaul said.

The council, which is the apex body of the fashion industry, is also negotiating with venture capitalists for funding the Rs 200 crore industry, he said. The fashion industry, which is growing annually at 25 per cent, needed assistance from venture capitalists, he said.

"We are in talks with venture capitalists but fashion designers will have to corporatise their entities."

He said there were some designers like Rohit Bal, who had corporatised their companies in order to meet the requirements of either Sidbi or a number of angel investors.