Deluxe Recycling has opened a multi-layered plastic recycling plant in Sarigam, in the Indian state of Gujarat.
The Mumbai-based waste manager recycles used beverage cartons as well as multi-layered and mixed plastic waste. With the opening of the new facility, Deluxe has doubled its overall multi-layer plastic recycling capacity from 13,000 tonnes/year to 27,000 tonnes/year. It also operates another recycling plant in Bengaluru.
Funding from Circulate Capital, a circular economy investment management firm which manages the largest recycling portfolio in Asia, fuelled the expansion of the venture.
Deluxe aims to increase its capacity to 50,000 across the two locations in the next two and a half years to eventually become South Asia’s largest multi-layer plastic recycler.
The company employees a small network of waste pickers that help it divert multi-layer packing from landfill. At its material recovery facilities, the waste is collected and sorted for recycling. Deluxe uses proprietary, in-house developed technology to manufacture a variety of rigid products with its recyclate. It currently holds 90% of the market share for recycled seat boards for rickshaws, also known as tuk-tuks, a popular means of transport in the buzzing streets on India.
“Opening the largest multi-layered plastic (MLP) recycling plant in India is a pivotal step for us towards translating our vision into a reality, and we appreciate the continuous support from Circulate Capital,” said Jignesh Shah, managing director of Deluxe. “This facility marks a significant advancement for us towards developing sustainable solutions for the collection, management, and recycling of MLP, driving impactful environmental progress in India.”
India’s plastics recycling rate stood at 8% in 2019. The country generates nearly 26,000 tonnes of plastic waste every day, more than any economy expect the United States and the European Union. The country aims to recycle 60% of plastic waste by 2028.