India’s drive for rPET

New facilities for boosting the recycling of PET in India has been agreed by Indorama Ventures and Varun Beverages, PepsiCo’s second-largest bottling company outside the US.

Chemical producer Indorama, through a subsidiary Dhunseri Ventures, and Varun haveformed a joint venture in what is seen as a substantial move towards meeting an increasing demand for recycled content in India.

Two PET facilities, one at Kathua in the north and one at Khurdha in the east, are planned for completion within 2025. The aim is to reach a total annual rPET capacity of 100 000 tonnes.

Escalating demand

The initiative aligns with the escalating demand for rPET content in India, driven by regulatory mandates and a collective effort towards a more circular economy for PET. Demand is expected to increase from approximately 400 000 tonnes next year to over one million tonnes by 2031.

Mandates include the Indian government’s compulsory requirement of 30% recycled plastic content in plastic packaging by 2026, escalating to 60% by 2029. The new facilities also cater to the needs of beverage brand owners with ambitious sustainability goals.

Yash Lohia, chairman of the ESG council of Indorama Ventures, says the partnership underscores a ‘steadfast commitment’ to sustainability and support for India’s escalating demand for rPET.

Dedication

‘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.’

Varun Jaipuria, executive vice-chairman of Varun Beverages, adds, ‘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 emphasise using green energy as well as reuse of PET which will be instrumental in mitigating environmental impact.’

Indorama Ventures is the world’s largest producer of recycled PET resins widely used in food and beverage packaging. By 2023, Indorama Ventures had recycled more than 100 billion PET bottles. Its target for next year is to recycle 750 000 tonnes or 50 billion bottles annually.