Bangkok-based Indorama Ventures, through Indian subsidiaries, has formed a JV with Varun Beverages to establish several greenfield PET recycling facilities in India.
September, 2024: Bangkok-based Indorama Ventures Public Co. Ltd., through its direct subsidiary – IVL Dhunseri Petrochem Industries Ltd. – 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,” Indorama says.
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 percent recycled plastic content in plastic packaging by 2025-2026, escalating to 60 percent 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.
“We at IVL Dhunseri are delighted to collaborate with Varun Beverages in the establishment of these mechanical recycling facilities in India,” Yash Lohia, chairman of the Environmental, Social and Governance (ESG) Council of Indorama Ventures, says.
“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 postconsumer PET bottles into valuable resources.”
Varun Jaipuria, executive vice-chair of Varun Beverages Ltd., says, “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.”
The JV partners say the investments align with the escalating demand for rPET content in India, driven by both regulatory mandates and a collective effort toward a circular economy for PET. They add that the 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.
The partnership involving three sizable companies also “bodes well for bolstering the region’s recycling infrastructure,” Indorama says.
Indorama Ventures describes itself as the world’s largest producer of recycled PET resins used in food and beverage packaging, having built a global footprint since 2011. In 2023, Indorama crossed the 100 billion PET bottles recycled threshold and is progressing toward its target of recycling 750,000 tons or 50 billion bottles annually by 2025.
Varun Beverages produces and distributes a range of carbonated and noncarbonated beverages in India sold under trademarks owned by PepsiCo, including Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda, Evervess, Slice, Tropicana Juices, Gatorade and Aquafina.
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