Hyderabad-based Srichakra Polyplast triples its rPET production capacity

Srichakra Polyplast (India) Pvt Ltd, a Hyderabad-based India’s leading technology-driven plastic recycling company, has decided to triple its production capacity of bottle-grade recycled polyethylene terephthalate (rPET) at its existing plant. Located on the outskirts of Hyderabad (Telangana), Srichakra Polyplast (India) is India’s first bottle-to-bottle grade recycler of polyethylene terephthalate (PET), polyethylene (PE), and polypropylene (PP). The company has been recycling post-consumer PET bottles and polyolefin packaging since 2021.

The present expansion will involve the addition of new recoSTAR PET 165 HC iV+ lines to the existing setup, including a PET bottle-to-bottle recycling line and another line equipped with odour-reduction technology for processing polyolefins. Under the plan, the integration of two new lines is expected to triple the company’s annual bottle-grade rPET capacity to 42,000 tonnes, up from the current 14,000 tonnes.

Repeated attempts to reach Srichakra Polyplast’s Managing Director, P V Ravindra, did not elicit a response. However, Polymerupdate has learnt that Srichakra Polyplast was encouraged to expand its capacity due to India’s rising demand for environment-friendly products, and most importantly, the company’s commitment to its investor, Circulate Capital. Additionally, the government’s mandate for packaging materials users to undertake extended producers’ responsibility (EPR) in a phased manner has also prompted large corporations to adopt more recycled products instead of virgin plastics. Producers, Importers, and Brand Owners (PIBOs) have been directed to take full responsibility for the packaging materials they use.

Origin and growth
Founded in 2010, Srichakra Polyplast produces superior recycled PET and olefin flakes and granules for the packaging industry, helping brand-owners reduce their use of virgin plastic. Since Circulate Capital’s initial investment in 2020, the company has increased its capacity six-fold, and has commissioned India’s first-of-its-kind bottle-to-bottle recycling facility. The company saw an opportunity to capture greater economic value from the plastic it recycles.

In 2021, Srichakra Polyplast invested US$10 million in strengthening its capabilities, installing world-leading bottle-to-bottle technology to become the first premium food contact-grade plastic recycling facility in India. The recycling technology is the United States Food and Drug Administration (USFDA) -approved and enables Srichakra to produce food-grade quality rPET, which meets international standards for food and beverage packaging including water bottles and takeaway containers.

Quality standards
Initially, Srichakra saw an opportunity to supply the highest grade of recycled plastic to customers in global markets such as Europe and the United States where rPET food contact applications are widely used and encouraged by regulators. It would also allow Srichakra to encourage adoption and acceptance of high quality rPET in the domestic market, by setting a benchmark for the recycling and waste management industry in India. Recently, Srichakra became the first Indian recycling company to receive a positive safety assessment from the European Food Safety Authority (EFSA), extending its leadership in accelerating plastics circularity in India.

At the same time, India’s Food Safety and Standards Authority (FSSAI) released new guidelines that will enable rPET for food packaging applications in India and Srichakra is the first and only company in India to have been authorised by FSSAI to manufacture recycled PET for food contact applications, positioning the company at the forefront of new circular supply chains as the policy shift takes place. Such developments are supported by multi stakeholder efforts such as the India Plastics Pact of which Srichakra is a member, along with The Coca-Cola Company, Mondelēz International and Unilever, as well as Dalmia, Lucro and Recykal.

Creating value-added end markets
While significant effort is being made to tackle the issue of plastic pollution, India has faced barriers in accelerating the development of a circular economy. Almost 90 percent of the PET collected in India ends up being recycled, but the recycled material is generally downgraded, resulting in low levels of circularity. Food contact-grade recycled plastic is close to virgin plastic in quality, however the use of recycled PET (rPET) in such packaging has been, until very recently, heavily restricted in India. Srichakra Polyplast received a positive safety assessment from the European Food Safety Authority (EFSA) in 2022 and became India’s first food-grade quality plastic recycling company with processing of rPET.

EFSA evaluates the safety of substances used in food contact materials (FCM) including active and intelligent materials. The decision from EFSA is predicated on an in-depth assessment of processes, with a focus on the suitability of the finished polymer product for packaging purposes. The use of rPET in FCM has been heavily restricted in several Asian regions including India until recently. The move by Indian authorities signals a policy shift that will enable bottle-to-bottle recycling and will help build local circular supply chains.

With the aim of reducing, reusing, and recycling plastic waste, the India Plastics Pact was launched in September 2021 to bring together businesses, governments and NGOs and accelerate the transformation of the plastic value chain. Srichakra’s certification is a part of this ongoing movement, showcasing the company’s commitment to turn plastic waste from a scourge into a valuable resource.

The Circulate Capital Ocean Fund (CCOF) is the world’s first investment fund dedicated to scaling organizations and SMEs transforming the waste management and recycling industry across South and Southeast Asia. The Fund was created in partnership with leading global corporations, including PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC and Mondelez International. Srichakra is currently in conversations with multiple global fast-moving consumer goods companies regarding offtake agreements and expects to further increase capacity across its operations.

First food-grade rPET plant
Srichakra Polyplast announced in 2021 the commissioning of its upgraded facility, the first of its kind in India to produce food-grade quality recycled polyethylene terephthalate (PET) pellets. The company has also commissioned its new polyolefins recycling facility which can produce deodorized bottle-to-bottle grade quality polyolefin pellets. The company has invested heavily to strengthen its recycling capabilities, which allow it to offer the highest grade of recycled plastic to customers in India and global markets such as Europe and the United States.

Srichakra’s world-class facility features US Food and Drug Administration-approved technology provided by Starlinger, the world’s leading technology provider for high-quality plastic recycling, which expands the company’s capacity to become the largest solid-state polymerized (SSP) PET processor in India. As the first premium food-grade quality recycling facility in India, the higher quality recycled plastics Srichakra can produce include: food-grade quality PET pellets, which can be used to produce food and beverage packaging such as water, carbonated soft drink, and juice bottles as well as takeaway containers; and high quality deodorized polyolefin pellets, which can be used in home and personal care product packaging such as lotion, shampoo, and detergent bottles.


By Dr. Sajjid Mitha (Founder and CEO)
POLYMERUPDATE / POLYMERUPDATE ACADEMY / RACE CONFERENCES
sajjid.mitha@polymerupdate.com