Re Sustainability, Aarti Circularity to invest ₹100 cr in plastic recycling plant
Private equity firm KKR-backed Re Sustainability and Recycling has formed a joint venture with Aarti Circularity, a wholly-owned subsidiary of Aarti Industries to set up plastic recycling facility in Hyderabad at an outlay of ₹100 crore.
Re Sustainability and Recycling will own 51 per cent stake and the remaining will rest with Aarti Industries. The plant for the new recycling company, which will have a resource recovery capacity of about 500 tonnes per day by 2030, is expected to be commissioned in 15-18 months.
Through chemical processing the plant will segregate, extract and recycle resources from diverse waste streams, including plastics, to produce advanced circular materials that can be used as raw materials, fuel or recycled polymer feedstock.
Plastic product manufacturers are mandated by the government across the world to use recycled polymers to promote recycling, which has pushed up the demand for recycled polymers.
The company is eyeing to set up a similar recycling facility in Maharashtra and Gujarat given the local municipal bodies’ focus on waste segregation.
Masood Mallick, Managing Director & CEO, Re Sustainability said the joint venture company is targeting to achieve a turnover of ₹5,000 crore in the next five years given the growing use of plastic and steady rise in demand for recycled polymers.
The company will require 200 tonnes of municipal waste to extract 100 tonnes of advanced circular materials. Re Sustainability and Recycling currently collects 9 million tonnes of waste per annum and recycles 9 lakh tonnes of plastic waste across its plants in Delhi, Lucknow, Hyderabad, Chennai and Chhattisgarh.
Post Comment