Manufacturing of tailor-made suits for export Note: This project has been cancelled, because of bankruptcy of the applicant.The applicant A suit That Fits Ltd (ASTF) was established in 2006. The company is active in the market niche for tailor-made clothing. ASTF employs 48 staff. The company has its head office in London and 33 fitting studios across the United Kingdom (UK). ASTF has developed its own software to support the studios in transfer of measurements and other data for each suit.The local partner Suit That Fits Pvt. Ltd. (STF) was registered in 2008. The company produces suits for the company of ASTF. Furthermore, STF sells tailor-made garments on the local market. The company employs 10 staff and co-operates with 20 tailors.The applicant ASTF and the Nepali partner STF want to establish a joint venture in Nepal. The company will comprise an industrial workshop for the manufacturing of tailor-made suits to be marketed via ASTF in the UK and other countries.The market for tailor-made clothing and particular suits has been growing even during the economic downturn and the partners wish to position themselves as one of the leading UK suppliers. The unique production chain concept will enable the partners to remain price-competitive while adhering to the highest ethical standard of business conduct.The joint venture will invest in a workshop and a combination of computer-controlled, semi-automatic and manual equipment.The employees will be trained to work with the new equipment and to deliver a high quality of suits. The computer network that will be established will connect the workshop with the UK office, guaranteeing real-time communication.The SEDEx (Supplier Ethical Data Exchange) – SMETA (SEDEx Members Ethical Trade Audit) certification the joint venture will obtain, will give the partners and their customers a guarantee that the supply chain is developed on fair and sustainable principles, with fair sharing of profits and good working conditions for all employees.With this project the partners will demonstrate how a viable garment supply chain can be set up under Nepali circumstances. Through its membership at the Garment Association of Nepal the joint venture will aim to increase the level of skills in the sector.Corporate Social Responsibility (CSR)The joint venture will assure compliance with the ETI base code for labour practices and will obtain certification under the SMETA standard of SEDEx. This standard is widely accepted in the UK as it ensures transparency and offers up-to-date database with information on business conduct of all companies listed.Impact•	Employment and working conditionsThe wages will be at least 40% above the minimum wage in Nepal. Fringe benefits for employees include provident fund for employees after 2 years of employment, gratuity after 5 years of service, medical insurance for accidents, health insurance, overtime pay, holiday / festival allowance, team building activities and social events.The new manufacturing facility will be built and equipped to provide good working conditions and meet health and safety standards as required by law and the criteria of the SMETA audit guidelines.The company will employ 53 people directly. On top 35 stitchers will be hired and paid per unit produced. However, if work is slow, a minimum payment is guaranteed to the stitchers.•	Innovation / Transfer of knowledgeThe technology introduced is new for Nepal. For example computer-controlled cutter, special lockstitch equipment and dedicated machines for steam-ironing. The joint venture will also introduce an innovative industrial organisation of the manufacturing process with strong attention for quality control.•	Chain effectsThe main suppliers of the joint venture will be suppliers of fabric. Although the majority of fabric will be imported, local importing companies will also generate an additional turnover.Furthermore, suppliers of lining, pattern paper, eco-fabric, threads, buttons and other supplementary material will benefit from the project.The joint venture will take care that all suppliers are aware of the ETI standard and the SMETA requirements and will assist new suppliers to comply with the quality requirements.As the joint venture will be export-oriented, it will impact local consumers only indirectly – through its cooperation with the local partner STF.•	Impact on the sectorThe joint venture will apply for the membership at the Garment Association of Nepal. The joint venture will participate in the Association’s effort to strengthen the sector and develop a training centre that is currently being established in a joint effort of the Nepali Government and the Garment Association.•	EnvironmentThe joint venture will aim to minimise any adverse effects on the environment.•	Position of womenSlightly positive.Overall 40% of the employees will be women, and of the medium-/high-skilled jobs 35% will go to female workers.•	Impact on government/society levelPartners have made a commitment to a middle school in Kathmandu to sponsor several poor and needy students.Furthermore, the project will generate tax income for the Government and a regular inflow of foreign currency from export.•	Impact on the local shareholders' positionThe company of the local partner will focus on the local market, but it will use the same supply channels as the joint venture and will therefore offer the same quality suits to local customers. The designs used by the joint venture will also be made available to SFT so that the local company will offer to the local market the clothing according to the latest fashion and style trends. To establish an industrial manufacturing unit in Nepal for the yearly production of 6,600 tailor-made suits and 3,000 garments and textile accessories for export to the Western markets.