SLMG Beverages, Coca-Cola India’s independent bottler, is collaborating with Dalmia Packaging, to establish a PET bottle recycling plant in India, the Hindu Businessline reported.
The plant, a joint venture for the two companies, will be developed with an investment of Rs0.9-1bn ($10.7m-$11.99m).
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The facility will boast an annual capacity of 36,000mt and produce 24,000mt of plastic for PET bottles.
The JV will leverage Dalmia Packaging’s expertise in plastic sourcing for the recycling process.
The location for the plant has been selected between the two cities of Lucknow and Kanpur in the state of Uttar Pradesh.
Machinery procurement for the project is currently underway.
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By GlobalDataThe food-grade plastic recycling plant is expected to contribute to 20% of SLMG’s sales.
SLMG has also appointed Costin Mandrea, a Coca-Cola industry expert, as CEO to professionalise the operations and prepare for capital market entry within the next two to three years.
The company, which operates seven plants and a daily bottling capacity of 410m units, is a major supplier for Coca-Cola in Uttar Pradesh.
It supplies 90% of the Indian state’s demand and has a significant presence in other states such as Uttarakhand, Bihar, and Madhya Pradesh.
The company’s extensive network reaches over 300 million people via 1.5m outlets and more than 1,500 distributors.
SLMG Beverages chairman & managing director SN Ladhani was quoted by
The Hindu Businessline as saying: “We have written to the central government for getting the same concessions extended to recyclers in other industries. We expect to start production in two years.”
