Information on the Target

Re Sustainability and Recycling Private Limited (ReSRL), a subsidiary of Re Sustainability Company (ReSL), has partnered with Aarti Circularity Limited (ACL), part of Aarti Industries Limited (AIL), to launch a pioneering joint venture in India aimed at enhancing plastic recycling. This collaboration marks the establishment of a Joint-Venture Company (JVCo) focused on developing Plastic Materials Recycling Facilities (PMRFs) across India, with an initial investment of approximately ₹100 crores for the first facility located in Hyderabad.

The PMRFs are designed to tackle diverse waste streams, specifically plastics, through methods of segregation, extraction, and recycling. These operations aim to produce Advanced Circular Materials (ACMs) for use as raw materials, fuels, or recycled polymer feedstock. Set to achieve a resource recovery capacity goal of 500 tons per day by 2030, this initiative represents a significant step forward in India's sustainable waste management journey.

Industry Overview in India

India's waste management landscape is currently undergoing a transformation as the country faces escalating plastic pollution challenges. The rapid urbanization and economic growth have led to increased plastic consumption, leaving the country grappling with inefficient recycling practices and a mounting waste crisis. This situation necessitates advanced recycling solutions that can effectively manage plastic waste.

The Indian government has recognized the urgency of addressing plastic waste and has introduced policies aimed at enhancing recycling rates and promoting a circular economy. Initiatives like the Plastic Waste Management Rule emphasize the responsibility of producers and consumers in managing plastic waste, thereby fostering a more sustainable approach to waste management.

Moreover, with sustainability garnering significant attention from both consumers and investors, companies that adapt innovative and efficient recycling practices are likely to benefit from increased demand for their services. As public and corporate awareness of environmental issues rises, the shift towards circular economies presents opportunities for market growth.

The market is projected to witness significant advancements in recycling technology, further supporting the development of infrastructure for sustainable waste management. The establishment of facilities like those planned by ReSRL and ACL can be pivotal in changing the landscape of plastic recycling in India.

The Rationale Behind the Deal

The collaboration between ReSRL and ACL aims to leverage each company's strengths to create a robust framework for sustainable plastic recycling. By combining ReSRL's waste management expertise and ACL's 40 years of experience in specialty chemicals, this joint venture is poised to address critical waste challenges across India.

This partnership reflects a strategic commitment to build advanced recycling infrastructure that minimizes environmental impacts while maximizing resource recovery. The JVCo's goal of processing significant volumes of municipal waste and producing valuable ACMs aligns with broader sustainability and circular economy objectives, making it a timely and necessary initiative in India's environmental landscape.

Information About the Investor

Re Sustainability Limited (ReSL), backed by KKR, stands out as one of Asia's leading providers of environmental management services. The company is recognized for its comprehensive range of solutions in recycling and resource recovery, making it India's largest entity in this sector. With operations spanning over 100 locations across several countries, ReSL is dedicated to enhancing its global presence while focusing on sustainable practices.

Aarti Industries Limited (AIL) is a globally recognized specialty chemicals manufacturer with a strong reputation for integrating sustainability into its business model. Ranks among the top competitors in its field, AIL is dedicated to balancing economic growth with environmental responsibility, showcasing a commitment to sustainable development that will aid the success of the joint venture.

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The establishment of the joint venture between ReSRL and ACL has the potential to be a significant investment in India’s recycling industry. By addressing the urgent need for effective plastic waste management solutions, this partnership aligns with national policies aimed at sustainability and environmental stewardship.

The emphasis on technological innovation and the deployment of advanced recycling strategies is an astute approach, providing a competitive edge in an increasingly environmentally-conscious market. Furthermore, the anticipated turnover of ₹5000 crores within five years highlights the lucrative prospects of this investment.

Given the rising public awareness and regulatory pressures surrounding plastic pollution, the demand for innovative recycling solutions is likely to expand, positioning this venture as a timely and relevant response to market needs. Overall, this joint venture could establish benchmarks for sustainable practices within the industry.

In conclusion, as society pushes for more sustainable development, this partnership is expected to pave the way for impactful changes in waste management, thereby representing a prudent investment opportunity in the future of plastic recycling in India.

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