OUR JOURNEY

Established Yarn Dyeing Division at IIP,

Faisalabad with current dyeing capacity of
354,000 Kgs per month

Created business alliance with Euro

Established vertically integrated Sox Plus, Netherlands to provide sales, Established Hosiery Plant 3 at Lahore
Commencement of Interloop Hosiery Plant 1 at Faisalabad with Established vertically integrated Hosiery Plant marketing, market intelligence, design, through acquisition, with current
Operations at Faisalabad with current monthly production capacity 2 at IIP, Faisalabad with current monthly logistics, warehousing and monthly production capacity of 13.7
10 Knitting Machines of 14.3 million pairs of socks production capacity of 17.9 million pairs of socks distribution services to customers in million pairs of socks
Europe & UK

199 200 200 200 200 200 200 201 201 201
2 0 3 5 6 7 9 0 1 2

2nd Unit with addition of 400 Established Spinning Unit - I at Established Interloop North Established IL Bangla Limited, Set up Interloop China Office to source
Knitting Machines Interloop Industrial Park (IIP), America; an affiliate and exclusive Bangladesh, a vertically integrated top quality yarns, dyes, chemicals &
Faisalabad comprising 20,400 spindles North American representative Hosiery Plant with current monthly other raw materials cost effectively and
of Interloop Limited to provide production of 2.5 million pairs of to ensure better lead time
trend analysis, design & socks
product development, sales,
marketing, warehousing &
logistic services

10 Interloop Limited Sustainability Report 2019 11

 Set-up a dedicated Tights & Leggings
Production Unit at Plant 1, Faisalabad with Established IL Apparel (Pvt.) Limited; a subsidiary of
monthly production capacity of 0.45 million Interloop Limited, for manufacturing Knitwear Apparel
pieces

OUR JOURNEY

Established Hosiery Plant 5 pilot project

Constructing LEED Platinum certified with 94 modern Italian Knitting Machines
Interloop Denim Apparel manufacturing currently producing 900,000 pairs of socks
Expanded Hosiery Manufacturing footprint Interloop Limited was demerged in order to plant at Lahore. Operations will commence per month. Planned to be scaled to a
As part of business diversification Inaugurated Interloop Spinning to Sri Lanka through affiliation with Texlan separate non-textile business into a separate in Q4, 2019 with planned capacity of vertically integrated sustainable manufacturing
strategy, established Interloop Unit - II at IIP, Faisalabad Center (Pvt.) Ltd. with current monthly Holding company & Interloop Limited looking 500,000 garments per month, to be facility with installed capacity of 1,280 knitting
Dairies Limited comprising 26,304 spindles production capacity of 3.25 million pairs of after the textile business, with approval of LHC enhanced to 1 million garments by 2021 machines, producing
socks 17.28 million pairs of socks per month

2013 2014 2017 2018 2019

Set-up a dedicated Vertical Sampling Commissioned Region’s First LEED Held the largest private sector IPO in
Facility at IIP, Faisalabad Constructed the New Distribution Gold Certified Socks manufacturing Pakistan’s history and listed at Pakistan Installed 2.0 MW Grid Tied Solar
Center at IIP, Faisalabad with storage facility (Plant 4) at IIP, Faisalabad Stock Exchange (PSX) as the Largest Power Generation System at
capacity of around 26.4 million pairs of with installed capacity of 720 Textile Company by Market Capitalization Hosiery Plant 4 & Spinning, IIP; a
socks Specialized Knitting Machines and renewable energy venture focused
monthly production capacity of 5 at reducing around 1500 tons of
million pairs of socks Carbon Emissions annually

12 Interloop Limited 15.4 MW Interloop Power Plant based on Tri-Fuel

Engines was setup at IIP, Faisalabad to cater to energy
Sustainability Report 2019 13
requirements of existing facilities and new extensions
 CORPORATE PROFILE BUSINESS CATEGORIES
Interloop Limited, launched with 10 materials and the capacity to produce Interloop sold 43 million dozens of
knitting machines in 1992, has 700 million pairs of Socks & Tights socks and tights, 26 million kg of
grown into one of the world’s largest annually, for top international brands yarn and dyed 4 million kgs of yarn.
Hosiery manufacturers. A complete & retailers spread across Europe, Asia
vertically integrated company with and USA. With current annual There were no major changes in
state of the art Spinning, Yarn turnover to the tune of USD 250 organizational structure except the
Dyeing, Knitting and Finishing million, Interloop is expanding its start of the new denim facility at
facilities. Interloop is Hosiery business and venturing into the Lahore and listing on the Pakistan
Pakistan’s 6th largest exporting firm Apparel segment including Denim, Stock Exchange during the year
and the Largest Listed Textile Knitwear & Active wear. which resulted in the offering of
Company on Pakistan Stock shares to
The total revenue for the year ended the institutional investors and general 700 HOSIERY
Exchange by Market Capitalization.
on June 30, 2019, was PKR 37,524 public. The details about the pattern Million Pairs of Socks and Tights production
With over 5,000 latest Italian knitting million with a net profit of PKR 5,195 capacity annually
of shareholding can be found on page
machines, 17,000+ employees and million. The total operating cost for 232 of the Annual Report 2019. There
an organizational network spread
across 3 continents, Interloop has
materials and services for the year was were no changes in the supply chain 26 YARNS
PKR 22,755 million. During the year, during the year. Million
the proficiency to work with different
kgs Yarn production capacity, 5 Million kgs Deying
capacity with 0.9 Million kgs Air Covering annually

12 DENIM
Million Garments planned capacity annually by 2021

KNITWEAR
6.5 Garments planned capacity annually by 2021
Million

6.5 SEAMLESS ACTIVE WEAR

Million Garments planned capacity annually
by 2021

16Interloop Limited Sustainability Report 2019 17

 BUSINESS CATEGORIES
Hosiery We Produce a Wide Range of Top Product Development
Quality Products for World’s
Headquartered in Pakistan, Hosiery Leading Brands and Retailers A dedicated Vertical Sampling Facility
manufacturing & exports is the Flagship (VSF) at Interloop Industrial Park,
Our Product Range includes:
business category of Interloop Faisalabad comprising a Yarn Library,
Limited. Spread across South Asia, it • Socks (Performance, Athletic, dedicated Yarn Dyeing Machines,
comprises of 5 vertically integrated Casual, Formal, Specialty) 100 Knitting Machines and Linking to
manufacturing facilities in Pakistan, • Tights & Leggings Finishing capabilities develops premium
over 250 Acres across 3 industrial We are focused on delivering: quality products for customers. The
zones, and 1 each in Bangladesh and Product Development Lab houses
• Design & Fashion Trends
in Sri Lanka through associated a complete range of latest colour
• Premium Quality
companies. This report development machines.
• Inventory Planning & Management
only takes into account the
• Lean Manufacturing Techniques
impact of local operations and
• Timely Delivery
does not
• Speed to Market
include overseas facilities as those are
The vertically integrated production Currently housing 5,000+ knitting Quality Assurance
separate entities.
is equipped with the latest Italian machines, Interloop has the capacity
Knitting Machines, Spanish Processing to produce over 700 million pairs of The Quality Department looks after
Machines and Italian Dyeing Machines, socks and tights annually. We will Quality Assurance, Quality Control,
having quick changeover capability be expanding the hosiery business Quality Testing Labs & QMS. The
and highly skilled staff to produce by adding another 1,280 knitting Quality Policy refers the way our
high volumes of standard mix and machines in Plant 5, expanding our teams follow the working processes
low volumes of customized capacity to c.6,500 knitting machines to produce quality products and
products. Interloop Plant 4, located with a production capacity of 900 deliver excellent services to our valued
at Interloop Industrial Park, is million pairs annually. customers. With ISO / IEC 17025:2005
Pakistan’s & Region’s First LEED & ISO / IEC - 17043 accreditations,
Gold Certified Socks Production Interloop is the First Textile Company
Facility, ensuring 26% Energy in Pakistan to provide Local Proficiency
Savings, 51% Reduction in Portable Testing (PT).
Water Usage & 25% Enhanced
Fresh Air Intake.

Research & Innovation

A dedicated Research & Innovation

(R&I) Centre at Pakistan, equipped
with hi-tech knitting, processing and
finishing operations, a modern lab,
and an extremely competent team
has launched multiple commercial
concepts including innovative knitting
constructions, processing treatments,
specialty yarns and finishing
operations. Three Patents have already
been granted to Interloop and patents
for two products are in the application
process.

18 Interloop Limited Sustainability Report 2019 19

BUSINESS CATEGORIES

Denim
As part of business diversification,
Interloop is entering into the Denim
Apparel Segment and has envisioned
a production facility with minimal
environmental impact, prioritized
worker well-being and will maintain
high standards of operational and
cost efficiency, ensuring that Interloop
continues to serve its customers
effectively.

The production facility will be LEED

Platinum Certified and will be the
most technologically advanced and
The scope of operations includes to replace manual processes for
sustainable denim apparel production
Yarns Yarn Dyeing & Air Covering Viscose, Wool, Bamboo, Blended,
Microfibers and Recycled Yarns. facility in this part of the world. The
Cut & Sew, Laundry and Packing & minimizing impact on workers and
Accessories. Automated precision improving quality. Built-in quality
Spinning A state of the art Yarn Dyeing (YD) plant will go into production in Q4,
machines have been installed for measures have been put in place to
facility, equipped with highly automated Modern Italian Air Covering Machines 2019 with planned capacity of
better productivity. Overhead hanging minimize defects and rework.
Interloop produces over 26 million dyeing operations, automatic dyestuff, with annual production capacity of 500,000 pcs per month, to be
systems have been put in place to
Kgs of top quality Yarn for a range chemical dispensing system, etc., is 0.9 million Kgs are being used for enhanced to 1 million pcs per month The implementation of new and eco-
ensure a Lean manufacturing system.
of textile customers, following strict providing a wide variety of colors in covering all types of in-house dyed, in 2021. The plant has been designed friendly technologies will have favorable
Eco-friendly technologies are being
testing standards, on Automated Spun and Filament Yarns. With dope dyed and raw white yarns with in line with Lean concepts, will impacts both on our people and our
used to replace aggressive
Spinning Plants, using latest European annual dyeing capacity of over 5 various brands of spandexes like Lycra promote gender diversity and is planet and will enhance worker safety,
processing agents and reduce water
machinery. Raw materials include: million Kgs. Interloop is providing a and Creora, at different customized expected to achieve 50:50 male to boost productivity and minimize risk
consumption. Latest machinery
wide variety of colours in yarns percentages. female ratio. of work-related accidents or long term
• Pakistani and Imported cotton including Laser machines have been
including Polyester, Nylon, Acrylic, illness.
• Sustainable materials including commissioned
Coolmax, Modal, Tencel,
BCI and Organic cotton
• Synthetic fibers including Acrylic,
Viscose, Polyester, Pre-consumer
Waste Fibers

Multiple varieties of yarns produced

include: Plain, Slub, Multi Count, Slub
Lycra Core, Lycra Core, Polyamide
Core, Siro, etc. 40% yarn is
consumed in house with remaining
serving world’s renowned weavers,
knitters, denim and towel producers.

20 Interloop Limited Sustainability Report 2019 21

 BUSINESS CATEGORIES
Seamless Active Wear
Interloop has set up a Seamless
Active-wear vertical Pilot Plant at
the Interloop Industrial Park. With
current production capacity of
90,000 pcs per month, the ramp up
plan includes increasing the
production capacity to
270,000 pcs per month with
installation of 50 knitting machines
during 2020, and to 540,000 pcs per
month by installing 100 machines by
2021.

Latest Japanese machines provide a

large variety of sewing capabilities as
well as a variety of styling from basic
to hi-tec. The Seamless garments offer
360 stretch for ease of movement.
Interloop offers special synthetic
material range in recycled as well as
biodegradable materials, combining
durable performance with sustainability.
Knitwear
Expanding into the Apparel Segment,
Body mapping technology provides
Interloop has established IL Apparel
required construction, meeting the
(Private) Limited; a subsidiary of
needs of different body zones.
Interloop Limited which handles the
The product range includes basic
Knitwear business category of the
under garments to hi-tech active
company. The Knitwear Pilot Project;
wear for men and women.
a cut to pack garment manufacturing
facility has been operational since Jan
2019 and made its 1st export shipment
Xterity 3.0 in March 2019.
anything but basic.
With the assistance of our US A resourceful fabric sourcing
affiliate, Interloop has developed team, having strong linkages
and is selling its own brand Xterity with reliable spinners, knitters,
per month. This includes a good combination
3.0; performance active wear, online dye houses
of tee shirts, under wears, polos, sweatshirts
at Amazon. Xterity and printers, sources best quality
and fleece jackets. With 540 hi-tech
3.0 is designed with body mapping fabric and embellishments, as per
Japanese sewing machines, IL Apparel is
intelligence to provide comfort where customer requirements. IL
manufacturing all kinds of fashion diversity in
you need it most. Apparel has a dedicated Product
cut to pack garments.
Development Center, with 40
Made for men and women both, Xterity
sewing machines, for quick turn IL Apparel plans to put up a complete
3.0 workout clothing is stylish and
sampling for its customers. vertically integrated (fabric production
ultra- functional, offering a seamless,
smooth appearance and maximum The stitching plant has the
stretch production capacity of 1.2 million
for unlimited movement. Using quality garments
22 Interloop Limited fabrics for a breathable fit, our apparel is
to cut and sew) garment manufacturing complex at Interloop’s second Industrial Park.
This complex is expected to house 175 knitting machines with
65 tons capacity per day, dyeing & finishing set up with 70 tons capacity per day
and projected capacity of producing 5.4 million garments per month.

Sustainability Report 2019 23

OUR CUSTOMERS SUPPLY CHAIN
Interloop sells socks, tights & leggings to top brands and retailers across Europe, USA & Asia. Suppliers are vital partners in Our procurement strategy also • Equipments (Machines and Allied
meeting customers’ expectations takes into account the existence of Products)
Some of our top clients include: and delivering top quality products. policies and procedures at our
Our primary objective while making suppliers’ end for managing health Our supply chain consists of around
procurement decisions is to get the and safety, labor and human rights- 900 suppliers spanning more than 24
best combination of quality, economy, related issues. countries. The suppliers in Pakistan
efficiency and effectiveness while Our special consideration of the (Yarn suppliers) are mainly labor-
keeping sustainability as priority. The sustainability criteria while inducting intensive while suppliers abroad (parts,
Procurement & Sourcing department suppliers, as well as approach for machines, and plants) are mainly
at Interloop is responsible for ensuring carrying out periodic audits, help technology-intensive. We primarily
timely availability of materials as to ensure compliance and manage procure materials and services from
per requirements. Our procurement impacts in the supply chain. During local suppliers, in line with our strategy
management not only focuses on the year, 90 new suppliers were to encourage the development of
cost effectiveness but also on screened for impacts on the local supply chain, leading to
bringing a positive change for environment and the society. economic development within the
stakeholders by pursuing an ethical country.
and sustainable business. We have We procure the following items from However, the equipment, materials
Green Purchasing strategy in place our wide range of supplier base: and services which are not available
to limit the negative impacts on the in Pakistan or do not meet the end
• Hosiery Yarns (Cotton Yarns, Man-
environment in our supply chain. The customer requirements are procured
made Yarns, Regenerated and
strategy clearly defines the desired from abroad. During the year, we
Recycled Yarns)
course of action and factors to be procured around PKR 20 billion worth
considered while making • Dyes & Chemicals which meet material and services of which 60%
procurement decisions. We require Oeko-Tex requirements and other was from local and 40% from global
our suppliers to be compliant with International Certifications suppliers.
international standards related • Services General (Repair &
to product specification and quality. Maintenance, Construction, etc.)
24 Interloop Limited Sustainability Report 2019 25
 COMMITMENTS,
MEMBERSHIPS & AWARDS
Awards
Interloop is a member of various Nations entity dedicated to gender
industry associations and also supports equality and the empowerment of
charters developed in the areas of women. We earnestly participate in the
economic, environment and social events managed by the organizations
impact management. We actively where we hold memberships but do
support the Sustainable Development not hold any management position.
Goals of UNDP and strive to align our We do not offer substantial funding
strategies to uphold the ones most to these organizations except
relevant to our operations. We also membership fees and sponsorships for
support UN Women which is the events/seminars.
United

Memberships

adidas Performance Award

In 2018, adidas awarded Interloop for Zero Waste Water discharge at its LEED Gold Certified facility; 120kW solar Energy Generation being enhanced to 2MW by Q3, 2019; significantly Reducing the use

Pakistan Business Council All Pakistan Textile Mills Association Pakistan Hosiery Manufacturers and
Exporters Association (PHMEA)

PUMA Sustainability Award EFP-OSH Award

PUMA Sustainability Award 2018 for Interloop was conferred the 14th EFP –
outstanding performance in Social Compliance & OSH
Environmental
Award 2018
Sustainability
in Diamond Category Jointly Organized by Employees Federation of P
in recognition of its Best Practices in
Safety, Health & Environment
Better Cotton Initiative The Faisalabad Chamber of The Lahore Chamber of Commerce
Commerce and Industry (FCCI) and Industry (LCCI)

Sustainability Report 201927

26 Interloop Limited
 TARGETS 2021
Target 2021
Direct economic value to be generated by 2021 Economic Value Distributed 2019 Economic Value Distributed 2018
(PKR in Millions) (PKR in Millions)
US$ 450 million (Rs. 65,000 million) 22,755

19,513

Performance till 2019

Direct economic value achieved in 2019 (Rs. 37,524 million)

Healthy and sustainable returns are targets may be annual, or, in the We have zero tolerance for corruption
vital for pursuing sustainability and case of expansions, acquisitions and in our operations as well as in
creating shared value. Our economic new business ventures, may be our relationship with our business 105
performance is guided by our spread over a longer term. Currently, partners. Our Code of Conduct
426

350
mission, vision and values, along our economic performance is guided clearly restrains our employees to 544 1,428

with targets set by the management by our vision: “To double our engage 7,898
3,591
for delivering exceptional results with turnover by 2020 through value in any such practice. Additionally,
6,853
Operating cost Payment to government Operating cost Payment to government
high quality products, exceeding addition, process improvement and our internal audit department carries Employee wages and benefilts Community Investments Employee wages and benefilts Community Investments

customer expectations. Our nourishing talent.” The Chief out audit of all activities and reports
Payment to providers of
capital
Payment to providers of
capital

operations have both direct and Executive Officer along with the to the Board Audit Committee. The
indirect economic management team is responsible Board Audit Committee reviews the
impacts in the form of return to for underlying activities to meet the report and corrective action is taken The economic performance is performance is available in financial of actuarial valuation. Interloop also
investors; payments to suppliers, targets. At Interloop, while pursuing the as per requirement. During the year, periodically reviewed against the set statement section of the Annual Report offers contributory benefit in form of
employees and the government; and targets, we have the policy to procure all operations were assessed for financial targets at Board meetings and 2019. provident fund to its employees. A
creation of livelihood opportunities maximum raw materials, process risks related to corruption and no corrective measures are taken through separate fund is maintained where
process improvement and cost Interloop offers market competitive Interloop contributes 7.5% while
in the supply chain, along with materials and other available incidence of corruption was recorded
savings to meet the defined targets. salaries and benefits to its workforce employees contribute 7.5% to 12.5% of
socioeconomic development of the products and services locally, to at Interloop.
and regularly monitors the remuneration basic salaries. The participation in the
surrounding communities. The Board strengthen
The Company has shown marvelous for relevance and compliance. Apart contributory benefit plan is voluntary.
defines the targets for economic local suppliers and create employment
results in the current financial year from salaries, Interloop offers defined The liability for defined benefit plan was
performance for the year. Goals opportunities.
by reporting the revenue of PKR benefit in the form of gratuity to its PKR 2,842.62 million in 2019 compared
and
37,524 million against revenue of PKR employees where no contribution is to PKR 1,925.61 million in 2018.
31,169
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED million in 2018 and securing net
profit
required from the employees. Interloop
does not maintain a separate fund
of PKR 5,195 million against net for gratuity and the liability for defined
FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 profit of PKR 3,886 million in benefit plan is calculated on the basis
Rupees in million 2018. The detailed information on
Economic Value Generated 37,524 31,169 26,550 26,426 24,213 financial
Revenues*
Economic Value Distributed
Operating Cost 22,755 19,513 16,851 16,585 16,218
Employee Wages and Benefits 7,898 6,853 5,778 5,016 4,225
Payment to Providers of Capital 3,591 1,428 1,377 1,045 1,703
Payment to Government 544 426 381 582 347
Community Investments 350 105 200 160 87
Economic Value Retained 2,386 2,844 1,963 3,038 1,633
Revenues as per the requirement of GRI Economic Performance 201:2016 disclosure 201-1 which requires inclusion of revenue from financial investments and
sales of assets.

44 Interloop Limited Sustainability Report 2019 45

 USING RESOURCES
EFFICIENTLY AND RESPONSIBLY
Material Sourcing and Raw Material Consumption
Consumption Material Unit FY 2019 FY 2018 FY 2017
Raw Material - Yarn kg 19,309,318 20,315,384 18,390,254
Interloop Limited is a vertically
Raw Material - Dyes and Chemicals kg 9,810,602 13,520,679 14,610,396
integrated setup. Considering yarns
Packaging Material kg 3,829,999 4,380,589 -
as priority raw material which is
being produced by using natural and
Of the total raw material at Interloop during FY 2019, 48.09% was renewable while 51.91% was non-renewable. The total raw
synthetic fibers, we produce as well
material comprises Yarns, Dyes & Chemicals and Packaging materials.
as procure cotton yarns, synthetic
yarns and regenerated & recycled
Recycled Input Material FY 2019 FY 2018 FY 2017
yarns which are processed using
dyes and chemicals to produce socks Percentage of recycled input
4.52% 5.56% 5.62%
and tights. At Interloop, we are materials used
focused on increasing the quantity of
scarcity, depletion of soil in cotton are based and also encourage them to
sustainable and certified materials The recycled material consists of Recycled Nylon, Polyester and Regenerated Cotton.
growing areas, waste management, engage in social activities.
(BCI Cotton, Organic Cotton and
labor practices and human rights
Recycled Yarns) to reduce the Interloop sources 100% raw materials
compliance. In order to effectively
environmental load of our products. from suppliers who are third-party
manage the risks in the supply chain,
The priority raw materials certified for an environmental or social
we source from certified suppliers
are determined by dividing the quantity sustainability standard which may
and compliance is ensured through
of each material by total raw material include but is not limited to Oeko-
rigorous supplier evaluation processes.
consumed (yarns & chemicals) during Tex Standard 100, BCI, GOTS and
Moreover, we are supporting many
the year and are sourced from Oeko- GRS, directly supporting SDG 12;
social initiatives in health, education,
Tex 100 certified suppliers. The major Responsible Consumption and
sports, literary & cultural activities within
environmental and social risks in the Production.
Pakistan where our major suppliers
supply chain are climate change, water

Raw materials third party certified to an environmental or social standards, by standard

Standard / Program Material UOM* FY 2019 FY 2018 FY 2017
Oeko-Tex - % 100 100 100
BCI BCI Cotton % 33.49 26.80 25.30
GOTS Organic Cotton % 2.37 2.80 1.82
GRS Recycled Cotton % 4.44 5.45 5.38
Recycled Nylon % 0.02 0.11 0.24
Recycled Polyester % 0.06 0.001 0. 004
Sustainable Cotton Program** - % 0.50 - -

*Percentage of total yarn consumed

**Primark sustainable cotton program

50 Interloop Limited Sustainability Report 2019

USING RESOURCES
EFFICIENTLY AND RESPONSIBLY
Energy Usage and reducing the energy consumption for 2 MWp solar installation was initiated
its operations through modern energy in FY 2019 and has been completed
Energy Savings efficient technologies and efficient successfully. The reduced energy
operations management. consumption initiatives include
At Interloop, we mainly require
installation of Waste Heat Recovery
energy in the form of electricity, During the year, significant steps System, Inverters on Cooling Towers,
steam and natural gas. We use natural were taken to increase the use of Fan Motor and Air Handling Units
gas, diesel, furnace oil and coal for renewable energy resulting in higher (AHU), Upgradation of steam blowers
electricity and steam generation. We percentage of clean energy supporting and Installation of Energy Efficient lights
also purchase electricity from Lahore SDG 7; Affordable and Clean Energy. at finishing floors.
& Faisalabad Electric Supply To achieve the target of 4MWp installed
Companies. Interloop solar capacity by FY 2021, a project
is continuously working towards of

Unit FY 2019 FY 2018 FY 2017

Energy used within
GJ 1,329,172 1,516,146 1,362,073 Solar Energy
Operations

The fuel consumption figures are derived from log record and converted from their respective measuring units to energy Solar energy is abundantly available,
in free of cost and the cleanest energy
GJ’s using factors from the Engineering toolbox. source in terms of GHG emissions.
Our currently installed solar capacity
Unit FY 2019 FY 2018 FY 2017
of 120kWp has already made a
Savings by Energy positive impact by generating 483,447
GJ 11,079 10,335 7,621
Conservation Initiatives kWh and reducing 268 tons of CO2e
emissions. The solar project of 2.0
MWp has been fully operational since
Energy Management August 2019 and is expected to further
Initiatives - ISO 50001 reduce 1500 tons of CO2e emission per

Interloop Limited is the 1st Textile Energy Consumption Savings by Energy Conservation annum. We have planned to increase
(GJ)
Company and 4th among all other Initiatives the renewable energy production to
(GJ)
industries in Pakistan to achieve 4MWp installed solar capacity by 2021.
11,079
ISO - 50001 Certification for Energy 10,335
Biomass Boiler
Management System (EnMS). The 1,362,073
1,516,146
1,329,172 7,621
certification provides guidelines for Biomass fuel has very small
applying EnMS to existing contribution to GHG emissions
monitoring and measurement compared to coal and furnace oil for
system along with streamlined steam generation. Interloop fulfills some
documentation. Currently,
the scope of this certification includes FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 portion of its energy demand by
(Years) (Years)
Plant 2, Plant 4, Vertical Sampling using bio-waste (corncob, rice husk)
as fuel.
Facility and Distribution Centre at for FY 2021 in Hosiery business. The The total reduction from this initiative in
the Interloop Industrial Park. EnMS FY 2019 was 1,779 tons of CO2e.
entire standard revolves around the
is helping in considerably
PDCA (Plan-Do-Check-Act) cycle that
improving energy efficiency at
endorses a continual improvement
Interloop Limited and is assisting in
process.
achieving its Environmental
Sustainability Targets
52 Interloop Limited Sustainability Report 2019 53
USING RESOURCES REDUCING
EFFICIENTLY AND RESPONSIBLY EMISSIONS AND WASTES
Water Usage investing in initiatives for recycling and During the year, different initiatives were
GHG Emissions and continuous upgradation of greenhouse gas emissions at our
reuse of processing water. taken for efficient utilization of water in operations. These emissions are production units to ensure compliance
Water is an important resource for the the production facilities and reduction Greenhouse gas emissions are the result of multiple operational with control limits as well as meeting
textile industry. It is extensively used Interloop withdraws ground water of fresh water intake, supporting processes and subject to limits set by the targets set in these areas as part
major cause of climate change and
in textile processing operations for consumption in its operations. SDG 6; Clean Water and Sanitation. Environmental Protection Agency (EPA) of our five-year plan.
cannot be completely avoided.
including dyeing, resizing, scouring, The area has been declared as The initiatives include water reuse in under Punjab Environmental Quality
However, measures can be taken
bleaching and mercerizing. Interloop high risk according to WRI aqua socks processing, installation of water Standards (PEQs). We regularly
to reduce the GHG emissions
uses water in hosiery as well as yarn duct tool. As water table is shallow, efficient Nano bubble technology in monitor
through introduction of cleaner
dyeing apart from producing steam. hence, mineral contamination is wash process, water saving taps in technologies
We are focused on reducing water more in the area. canteen areas and re-utilization of
consumption in However, the size of the water ablution water in the mosques. Unit FY 2019 FY 2018 FY 2017
our operations by using dyes which source is not known. The water GHG Emissions Mt 68,579 123,196 78,447
require less water, and installation of source is not declared as protected
area, however,
water efficient equipment. We are also it is significantly important for the
CO2, CH4, N2O gases are included in the calculation of CO2e emissions. No biogenic emissions occur at Interloop. The source
community dependent on this
source.
of emission factors were derived from IPCC’s 5th assessment report.

Water withdrawal by source Unit FY 2019 FY 2018 FY 2017

Ground water 2,667,672 2,971,045 3,283,288 Unit FY 2019 FY 2018 FY 2017
m3
Reduction in GHG Emissions
Mt 9,090 16,181 8,687
The water withdrawal is measured through flow meters. through multiple initiatives

Only scope - I emissions resulting from CO2, CH4, N2O gases are included in the calculation.
Initiatives for Efficient
Water Management GHG Reduction in GHG Emissions
(Mt)
Nano-Bubble Technology Emissions
Water Withdrawal (Mt) 16,181
3
(m ) 123,196

An important initiative is installation 3,283,288

of Nano-Bubble Technology for 2,971,045

78,447
2,667,672
9,090
wash 68,579 8,687

process. It reduces water consumption

by 95%, chemical consumption by
71% and energy consumption by
50%, with zero liquid discharge. So
far, 18
washing machines have been installed
FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019
in different processing units across the (Years) (Years)

company. FY 2017 FY 2018 FY 2019

(Years)

Comparative Reduction in Water Usage by adopting Nano-Bubble Technology

Consumption (per kg comparison)
Process Classical Technology Nano Bubble Technology % Reduction
Water (liters) 20 1.0 95
Chemical (g) 57 16.5 71
Electricity (Wh) 200 103.0 50
Wastewater (liters) 18 0.0 100 Sustainability Report 201955
54 Interloop Limited
REDUCING
EMISSIONS AND WASTES
Emission Reduction Effluent and Waste per policy. Centralized waste storage Wastewater
(m3)
facilities are established and operational
Initiatives Interloop has in place a well- at all manufacturing plants where all
2,884,143

Heat Recovery System at defined environmental policy collected waste is temporarily stored 2,203,464

Filament Yarn Dyeing Facility highlighting handling and discharge and placed before discharge or sale 1,772,530

of effluents and solid wastes or treatment. A dedicated workforce

Interloop has a state of the art (hazardous as well as non- is deputed for waste collection,
Filament Yarn Dye House equipped hazardous). The company is handling and discharge.
with the latest & highly specialized committed to work out the options
machines. for zero discharge of effluents.
Wastewater
FY 2017 FY 2018 FY 2019
(Years)
The Heat Recovery System provides Moreover, target for 100% Water pollution is a big hazard to
the added advantage of economizing compliance of ZDHC foundational
level by FY 2021 is also
its operations to a significant extent. in place. Based on the environmental water resources and the problem is limits. Interloop has biological effluent
High temperature waste liquor passes policy, Interloop is also proactively worsening with industrial expansion. treatment plants at all manufacturing
through heat exchanger to raise the working on minimizing of solid
facilities, treating effluent 24/7/365.
temperature of fresh water. Heated wastes, both hazardous and non- Large quantity of water consumed
The treated water is discharged into
water is used in subsequent dyeing hazardous. The Section Head and in textile production gets polluted by
The technology of Bi-Generation Preference to R-407 & R- Area In-charges at each plant are various chemicals used in the process.
industrial drains and the quantity of
processes with no fuel input, which system along with electricity produces 410 Refrigerant responsible for careful segregation of Consequently, it needs to be treated
water discharged is measured though
reduces 140 tons of CO2e emissions around 20% of the total steam with flow meters installed at all effluent
per annum. Keeping aligned with international waste, which by reducing the pollutants to an
significant reduction in GHG emissions. treatment plants.
standards, we prefer to use R-407 & is collected by waste stores through acceptable range as per applicable
WHRS has reduced 5,530 tons of
Waste Heat Recovery System R-410 refrigerants, gradually eliminating defined safe handling and disposal local laws and ZDHC foundational
CO2e in FY 2019.
(WHRS) the usage of R-12 & R-22 refrigerants, procedures, to ensure compliance as

We are harnessing free steam from which have been banned globally
Waste Heat Recovery (WHR) Boilers. due to their harmful impacts on Unit FY 2019 FY 2018 FY 2017
the environment.
Wastewater * m3 1,772,530 2,203,464 2,884,143
*Values for hosiery and yarn dyeing business

Sustainability Report 2019

56 Interloop Limited
 REDUCING
EMISSIONS AND WASTES
Waste by Type and Disposal Method Coal Ash Brick Plant
Method Unit FY 2019 FY 2018 FY 2017
We have taken the initiative of making
Hazardous Material bricks from Coal Ash; a waste
Reuse (Chemical Drums) number 11,353 13,305 - produced from the coal boiler during
Incineration kg 14,003 12,166 - steam generation. Rather than just
Non-Hazardous Material dumping the ash that destroys water
Other – Sold* kg 5,297,142 4,861,470 - quality and land fertility, the ash is being
used to produce bricks via an eco-
* The non-hazardous waste sold to third parties most of which is used as recycled or renewed material. friendly method, involving no burning of
fossil fuel and using sunlight for brick
Interloop does not transport hazardous
waste internationally. The hazardous
Initiatives to manage treatment plants run 24/7/365 and
are meeting not only the Punjab
curing. The Brick plant has the
capacity to produce 7,000 bricks per
waste produced as a result of Wastewater and Waste Environmental Quality Standards day.
operational activities is disposed off (PEQS) but also fulfilling the stringent These bricks have been used in the
Effluent Treatment Plants
through approved contractors. During international guidelines of Zero construction of Denim Plant at Lahore,
the year, 11,353 chemical drums Interloop understands its responsibility Discharge of Hazardous Chemicals mosque floor & walking track of I-Park
were sent back to suppliers for reuse towards ecological conservation and (foundational limits). The largest at Interloop Industrial Park, Socks &
while 14,003 kg waste was always takes measures to reduce treatment plant has the capacity Socks warehouse, automation unit
incinerated by the contractors. The any negative impact on the of treating 180m3 of effluent per at Plant 1 and are also being sold to
disposal methods for hazardous resources. As the effluent from wet hour. Interloop has a dedicated QC various top civil companies of Pakistan.
waste were confirmed by the processing is a potential laboratory at each ETP to closely
contactors. Standard Operating monitor the parameters and ensure Circularity
environmental contaminant, Interloop
Procedures for disposal of hazardous Limited has set-up state- that the effluent discharged into the
Cradle to Cradle Certification is a
waste provide guidelines regarding of-the-art effluent treatment plants environment is within safe limits.
globally recognized measure of safer,
handling, transportation, storage and at all hosiery manufacturing facilities more sustainable products made
disposal of hazardous waste generated to effectively manage treatment for the circular economy. Being
at all Interloop plants are followed requirements. This biological effluent ethically responsible and aligned with
throughout the process.
International trends, Interloop has
made a completely biodegradable
Cradle-to-Cradle (Gold) certified
product. The product is designed
on the principle of circular
economy and is fulfilling all five
sustainability
areas of C2C (material health, material
reuse, renewable energy and carbon
management, water stewardship and
social fairness). Non-biodegradable
materials like Polyester, Nylon and
Spandex have been substituted with
sustainable materials and further
processed by C2C certified dyes &
chemicals to make the product 100%
biodegradable.

58 Interloop Limited Sustainability Report 2019 59

Sustainability Report 2019 73