Indorama Ventures announced it is entering a joint venture with Varun Beverages, the largest bottling company of PepsiCo’s beverages in the world outside the United States.
The companies said they plan to build ‘several’ PET mechanical recycling facilities in India. They have already start construction of two plants, with completion expected in 2025. One facility is located in Kathua within the Indian-administered Kashmir region, and the other is in Khurdha in Eastern India.
Indorama and Varun Beverages expect to reach a total annual capacity of 100,000 tonnes of recycled PET across all recycling plants.
"As the world’s largest recycler of PET, this partnership underscores our steadfast commitment to sustainability and our support for the region's escalating demand for rPET content,” said Yash Lohia, chairman of the ESG Council of Indorama Ventures. “Anticipated to substantially diminish plastic waste, these new PET recycling facilities will convert post-consumer PET bottles into valuable resources. This initiative exemplifies the shared dedication of Indorama Ventures' and Varun Beverages to creating a circular economy, promoting environmental sustainability, and meeting the rising consumer demand for eco-friendly products."
The new partnership comes as Indorama recently secured a $200 million loan from the International Finance Corporation (IFC) to help fund its sustainability programmes in India, Thailand, and Indonesia. The Bangkok-based PET manufacturer said it will use the seven-year loan to finance its PET recycling operations across the three countries.
In 2019, India’s plastics recycling rate stood at 8%. The country generates nearly 26,000 tonnes of plastic waste every day, more than any economy expect the United States and the European Union. India’s government has introduced recycled content mandates of 30% recycled plastic in packaging by 2026 and of 60% by 2029.