Thailand-based Indorama Ventures Public Company Ltd, through its subsidiary IVL Dhunseri Petrochem Industries Ltd, has entered into a joint venture with Dhunseri Ventures Ltd and Varun Beverages Ltd, PepsiCo’s second-largest global bottler outside the US, to establish multiple PET recycling plants across India.
This strategic partnership reflects the companies’ commitment to sustainability and aims to address the growing demand for recycled PET (rPET) in India. The joint venture has already commenced construction on two greenfield PET recycling facilities, one in Kathua, Jammu, and the other in Khurdha, Odisha, with completion expected by 2025. The combined capacity of these facilities is projected to reach 100 kilotons annually, with further expansion plans on the horizon.
India’s demand for rPET is on a sharp rise, driven by regulatory mandates and the push for a circular economy. The demand is anticipated to grow from 400 kilotons in 2025-2026 to over 1 million tons by 2031. Government regulations require 30% recycled plastic content in packaging by 2025-2026, increasing to 60% by 2028-2029, pushing beverage brands to align with sustainability goals.
Yash Lohia, Executive President of Petchem Special Projects and Chairman of the ESG Council at Indorama Ventures, emphasized, “Our partnership with Varun Beverages reinforces our global leadership in PET recycling and supports India’s growing need for rPET.”
Varun Jaipuria, Executive Vice-Chairman of Varun Beverages, added, “This collaboration aligns with PepsiCo’s global PEP+ objectives and our long-term vision of investing in sustainable solutions. Our commitment to using green energy and promoting PET reuse will help reduce environmental impact and contribute to a greener future.”