BANGKOK, Thailand — September 2, 2024 — Indorama Ventures Public Company Limited, a global sustainable chemical producer, through its direct subsidiary – IVL Dhunseri Petrochem Industries Limited – and Dhunseri Ventures Limited have formed a joint venture with Varun Beverages Limited, PepsiCo’s second-largest bottling company globally outside the US, to establish several greenfield state-of-the-art PET recycling facilities in India. This strategic alliance marks a substantial move towards meeting the increasing demand for recycled content throughout India, representing the companies’ collective dedication to sustainability.
The joint venture has already begun the construction of two PET recycling facilities, planned for completion within 2025, with potential for more. One facility is in Kathua within the Jammu Division of the Indian Union territory of Jammu and Kashmir, situated in Northern India, while the other is in Khurdha within the State of Odisha, located in Eastern India. The aim is to reach 100 kiloton annual capacity of recycled PET (rPET) across all the facilities when combined.
This initiative aligns with the escalating demand for rPET content in India, driven by both regulatory mandates and a collective effort towards a circular economy for PET. The surge in demand reflects a significant shift, with projected volumes increasing from approximately 400 kilotons in 2025-2026 to over 1 million tons by 2031. Mandates such as the Indian government’s compulsory requirement of 30% recycled plastic content in plastic packaging by 2025-2026, escalating to 60% by 2028-2029, underscores the urgency and importance of this transformation. Moreover, this move aims to effectively cater to the needs of India’s beverage Brand Owners, many of whom have established ambitious sustainability goals in line with regulatory directions.
Mr. Yash Lohia, representative of IVL Dhunseri, and Executive President Petchem Special Projects, and Chairman of the ESG Council of Indorama Ventures, stated, “We at IVL Dhunseri are delighted to collaborate with Varun Beverages, in the establishment of these mechanical recycling facilities in India. 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. 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 amalgamation of the three industry leaders bodes well for bolstering the region’s recycling infrastructure. As regulatory frameworks increasingly advocate for heightened usage of recycled content, the joint venture is positioned to play a pivotal role in meeting these evolving requirements.
Indorama Ventures is the world’s largest producer of recycled PET resins widely used in food and beverage packaging. Since 2011, the company has operated PET recycling facilities, gradually expanding its global footprint. In 2023, Indorama Ventures achieved a significant milestone, recycling over 100 billion PET bottles. Progressing towards its target of recycling 750,000 tons or 50 billion bottles annually by 2025, the company remains dedicated to advancing circular economy practices.
Mr. Varun Jaipuria, Executive Vice-Chairman of Varun Beverages Ltd., added, ” As part of our long-term vision and in line with PepsiCo’s global PEP+ objectives, we remain committed to sustainability and environmental stewardship. We are making investments that emphasize using green energy as well as reuse of PET which will be instrumental in mitigating environmental impact. These endeavors are aligned with our pledge to the environment and reflect our ambition to nurture a greener future. Our collaboration with Indorama Ventures represents a strategic foray for Varun Beverages into the recycling market. We believe this joint venture will yield environmental dividends and generate substantial value for our stakeholders. As India’s recycling landscape undergoes a paradigm shift, we take pride in spearheading this transformation alongside Indorama Ventures. Through this joint venture, we endeavor to harness our expertise to cater to the escalating demand for sustainable packaging solutions.”
Posted: September 2, 2024
Source: Indorama Ventures Public Company Limited