Indorama Ventures Public Company Limited, a leader in sustainable chemical production, has partnered through its subsidiary, IVL Dhunseri Petrochem Industries Limited, and Dhunseri Ventures Limited with Varun Beverages Limited. As PepsiCo’s second-largest bottling company worldwide outside the US, this collaboration focuses on developing advanced greenfield PET recycling facilities in India. This strategic alliance represents a significant step toward addressing the burgeoning demand for recycled content in food and drink packaging across India, showcasing the companies’ shared commitment to sustainability.
Construction has already commenced on two state-of-the-art PET recycling facilities, slated for completion by 2025, with possibilities for future expansions. One facility is located in Kathua, within the Jammu Division of the Indian Union Territory of Jammu and Kashmir, in Northern India, while the other is set in Khurdha, within the State of Odisha, in Eastern India. Collectively, the goal is to achieve an annual recycling capacity of 100 kilotons of recycled PET (rPET) across all locations, significantly boosting sustainable packaging solutions.
This initiative strategically aligns with the surging demand for rPET in India, propelled by regulatory imperatives and a collective shift towards a circular economy in PET production. Projections indicate a substantial increase in demand, with volumes expected to rise from about 400 kilotons in 2025-2026 to over 1 million tons by 2031. Regulatory requirements, including the Indian government’s mandate for at least 30% recycled plastic content in packaging by 2025-2026 and up to 60% by 2028-2029, highlight the urgency and significance of this development. Additionally, this effort aims to meet the needs of India’s beverage brand owners, many of whom have set ambitious sustainability goals in accordance with regulatory guidelines.
Mr. Yash Lohia, representative of IVL Dhunseri and Executive President of Petchem Special Projects, as well as Chairman of the ESG Council of Indorama Ventures, stated, “We at IVL Dhunseri are delighted to collaborate with Varun Beverages in establishing 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 collaboration among these three industry leaders is poised to enhance the region’s recycling infrastructure significantly. As regulatory frameworks increasingly advocate for greater utilization of recycled content, the joint venture is strategically positioned to fulfill these evolving requirements in food and drink sustainable packaging.
Indorama Ventures stands as the world’s largest producer of recycled PET resins widely utilized in food and drink packaging. Since commencing operations in 2011, the company has gradually expanded its global recycling facilities. In 2023, Indorama Ventures achieved a remarkable milestone, recycling over 100 billion PET bottles. As the company progresses toward its goal of recycling 750,000 tons or 50 billion bottles annually by 2025, it remains steadfast in 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 align 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.”
