Indorama Ventures Public Company Limited, a global leader in sustainable chemical production, through its direct subsidiary IVL Dhunseri Petrochem Industries Limited, and Dhunseri Ventures Limited, has partnered with Varun Beverages Limited, PepsiCo's second-largest bottler outside the US, to establish cutting-edge PET recycling plants across India. This joint venture represents a significant step towards meeting the growing demand for recycled PET in India, reflecting the companies' shared commitment to sustainability. Construction has already begun on two PET recycling facilities, scheduled for completion by 2025, with more potentially on the horizon. One facility is located in Kathua in the Jammu Division of Jammu and Kashmir, Northern India, and the other in Khurdha, Odisha, Eastern India. The combined capacity of these facilities aims to reach 100 kilotons of recycled PET (rPET) annually. This initiative aligns with India's increasing demand for rPET, driven by regulatory requirements and a collective push towards a circular economy for PET. The demand is expected to rise from around 400 kilotons in 2025-2026 to over 1 million tons by 2031, spurred by mandates such as the Indian government's requirement for 30% recycled plastic content in packaging by 2025-2026, increasing to 60% by 2028-2029. This move also seeks to meet the sustainability goals of India's beverage brands, many of which align with these regulatory directives.

Yash Lohia, representing IVL Dhunseri and serving as Executive President Petchem Special Projects and Chairman of the ESG Council at Indorama Ventures, expressed enthusiasm for the collaboration with Varun Beverages. He highlighted the importance of these recycling facilities in reducing plastic waste and supporting the growing demand for rPET. He emphasized that this partnership reinforces Indorama Ventures' commitment to sustainability and the circular economy, converting post-consumer PET bottles into valuable resources.

The collaboration between these industry leaders is set to enhance the recycling infrastructure in the region significantly. With the regulatory landscape increasingly favoring the use of recycled content, the joint venture is poised to play a critical role in meeting these evolving requirements. As the world's largest producer of recycled PET resins, widely used in food and beverage packaging, Indorama Ventures has been operating PET recycling facilities since 2011, steadily expanding its global presence. In 2023, the company reached a milestone by recycling over 100 billion PET bottles and is on track to achieve its target of recycling 750,000 tons or 50 billion bottles annually by 2025.

Varun Jaipuria, Executive Vice-Chairman of Varun Beverages Ltd., highlighted the company's commitment to sustainability and environmental stewardship as part of its long-term vision aligned with PepsiCo’s global PEP+ objectives. He underscored the importance of investing in green energy and PET reuse to reduce environmental impact. This joint venture marks Varun Beverages' strategic entry into the recycling market, aiming to deliver environmental benefits and substantial value for stakeholders. As India's recycling landscape evolves, Jaipuria expressed pride in leading this transformation alongside Indorama Ventures, with the joint venture poised to address the rising demand for sustainable packaging solutions.