The move from the company more usually associated with expensive footwear and celebrity sponsorship was inspired by Bangladesh's Nobel prize winner, Muhammad Yunus, the pioneer of micro-loans which help the poor start their own businesses. He told the company, which has been criticised for exploitation in the developing world, that Bangladesh needed "social businesses" which would create jobs in the country.

Germany's Otto Group has signed a deal with Grameen Trust to start a joint venture in textiles in Bangladesh, Yunus Centre said in a statement yesterday.

Under the deal, Grameen and Otto will jointly set up Grameen Otto Trust and Grameen Otto Textile Company.