Deluxe Recycling Opens New Facility in Gujarat - Doubles Recycling Capacity

Mumbai, Jun 12 (PTI) Deluxe Recycling on Wednesday announced the inauguration of its new facility in Gujarat, following its plans to recycle over 2,00,000 tonnes of used beverage cartons (UBCs) and multi-layered plastic by 2030.

The new recycling plant in Sarigam (Gujarat) will more than double the company's recycling capacity to 27,400 tonnes per annum (TPA) across the two locations, Deluxe Recycling said in a statement.

The company, currently, supplies 90 per cent of the recycled seat boards to the automotive industry, it added.

Typically considered of no value and very difficult to recycle, multi-layered plastic (MLP) waste is one of the most polluting forms of plastic packaging.

India alone generates about 9.4 million tonnes of plastic waste annually, of which only 50 per cent is collected, Deluxe said, citing a report.

The recycling firm said it has developed a scalable ecosystem for the collection of MLP by working with and paying a network of aggregators and small material recovery facilities (MRF) to collect and sort the waste.

The company then uses in-house developed technology to manufacture a variety of high-demand heavy and rigid products, the company said.

"Deluxe Recycling is driving strategic expansion with the inauguration of a new recycling plant in Sarigam, Gujarat. With this new facility, the company is set to more than double its recycling capacity - from 13,000 TPA to 27,400 TPA across two locations - cementing its position as one of South Asia's largest MLP recyclers," the city-based company said.

"This facility marks a significant advancement for us towards developing sustainable solutions for the collection, management, and recycling of multi-layered plastic (MLP), driving impactful environmental progress in India," said Deluxe Recycling Pvt Ltd MD Jignesh Shah.

Funding from circular economy investment management firm Circulate Capital, which manages the largest recycling portfolio in Asia, helped the company in expansion, Deluxe said, adding this capital infusion has been instrumental in establishing new facilities in Sarigam in Gujarat, and Bengaluru.

While the company did not disclose the investment made in the new facility, a source said the amount could be around Rs 50 crore.