Indorama Ventures, a global sustainable chemical producer, has created a joint venture (JV) with PepsiCo's bottling company Varun Beverages to build polyethylene terephthalate (PET) recycling facilities in India.
The JV has been formed by Indorama through its subsidiary IVL Dhunseri Petrochem Industries and Dhunseri Ventures.
This collaboration is a significant step towards addressing the growing demand for recycled PET (rPET) content across India.
Construction has commenced for two PET recycling facilities, with completion expected by 2025.
The two facilities are located in Kathua in the Indian Union territory Jammu and Kashmir, and Khurdha in the state of Odisha.
The goal is to achieve a combined annual capacity of 100 kilotonnes (kt) of rPET.
This initiative is in response to the increasing requirement for rPET in India, propelled by regulatory mandates and the push for a circular economy.
Demand for rPET is expected to rise from around 400kt in 2025-26 to more than one million tonnes by 2031.
Indian regulations are set to enforce a minimum of 30% recycled plastic content in packaging by 2025-26, increasing to 60% by 2028-29.
The venture aims to meet the sustainability objectives of beverage brand owners in India, who are aligning with these regulatory mandates.
Indorama Ventures ESG chair and IVL Dhunseri executive president of petchem special projects Yash Lohia said: "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."
Indorama Ventures, a producer of recycled PET resins, has been operating PET recycling facilities since 2011 and has significantly expanded its global presence.
In 2023, the company recycled more than 100 billion PET bottles and is working towards its goal of recycling 750,000 tonnes or 50 billion bottles annually by 2025.
In June this year, Indorama Ventures secured a seven-year loan of $200m from the International Finance Corporation.
