Indorama and Varun Beverages Plan Recycling Operations in India

Indorama Ventures is collaborating with Varun Beverages, a bottling company for Pepsico, to create several recycling facilities in India. Two of the facilities are currently under construction and expected to be complete in 2025. One facility is in Kathua within the Jammu division of the Indian Union territory of Jammu and Kashmir, while the other is in Khurdha within the state of Odisha. The aim is to reach 100,000 metric tons of annual capacity for recycled PET, combined, across all facilities.

The initiative aligns with a growth in demand for recycled PET in India. Volumes are projected to increase from 400,000 metric tons in 2028-2029 to over 1 million metric tons by 2031. The Indian government has set rules requiring 30% recycled content in plastic packaging by 2025-2026, which escalates to 60% by 2028-2029. Many Indian beverage brands have set targets for the use of recycled content.

“This partnership underscores our steadfast commitment to sustainability and our support for the region’s escalating demand for rPET content,” says Yash Lohia, representative of IVL Dhunseri, an Indorama subsidiary. “Anticipated to substantially diminish plastic waste, these new PET recycling facilities will convert postconsumer PET bottles into valuable resources."

According to Indorama Ventures, the company had recycled the equivalent of 100 billion PET bottles by 2023, and set a target of recycling 750,000 metric tons annually by 2025.

“Our collaboration with Indorama Ventures represents a strategic foray for Varun Beverages into the recycling market,” says Varun Jaipuria, executive vice chairman of Varun Beverages. “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."