Deluxe Recycling Unveils India's Largest Multi-Layered Plastic Recycling Facility in Gujarat with Major Backing from Circulate Capital

June 17, 2024

4 Min Read
Deluxe Recycling

INDIA- Deluxe Recycling, a premier multi-layered plastic recycling company, is driving strategic expansion with the inauguration of a new recycling plant in Sarigam, Gujarat. The company, established in 1999 has been driving a unique approach to India’s waste management problem and has been at the forefront of innovating new technologies to recycle UBCs (Used Beverage Cartons) and MLPs (Multi-Layered Plastic), alleviating the pressure from overburdened landfills. With this new facility, Deluxe is set to more than double its recycling capacity - from 13,000 TPA to 27,400 TPA across 2 locations - cementing its position as one of South Asia's largest MLP recyclers.  By FY2030, the company aims to recycle more than 200,000 tons of UBCs and MLPs. The investment to build the Sarigam plant by Deluxe Recycling is around INR 50CR+ and the area of the facility is about 1.5 lakh sq. ft.

According to an article released by the World Economic Forum in 2023, India alone generates about  9.4 million tons of plastic waste annually, of which only 50% is collected. Typically considered of no value and very difficult to recycle, MLP waste is one of the most polluting forms of plastic packaging and, if it is collected at all, is used for fuel, incineration, or co-processing at cement plants. Deluxe 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 MLP waste. The company then uses proprietary, in-house developed technology to manufacture a variety of high-demand heavy, rigid products. Deluxe currently supplies 90% of the recycled seat boards to the automotive industry, which means nearly every rickshaw driver sits on a Deluxe-recycled seat.

Funding from Circulate Capital, the leading circular economy investment management firm, which manages the largest recycling portfolio in Asia, fuelled the expansion of the venture. This capital infusion has been instrumental in establishing new facilities in Sarigam in Gujarat, and Bengaluru. The funding propelled changes like an increase in capacity from 13,000 MTPA to 27,400 MTPA in Sarigam and Bengaluru while gearing for the future target of 50,000 MTPA in the next 2.5 years. It is aiming at creating 150+ jobs in Gujarat.

Jignesh Shah, MD, Deluxe Recycling Pvt. Ltd., said, “Opening the largest 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. 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. Our goal is to lead the way in building an innovative ecosystem to source MLP waste and give it a new life in high value applications.”

Rob Kaplan, Founder & CEO of Circulate Capital, mentioned, “We believe that Deluxe Recycling’s innovative market-based solution that incentivises the collection of typically hard-to-recycle MLPs will drive significant positive environmental and social outcomes, contributing to a circular economy for plastics in India. We are excited to see the transformative change this investment will bring over the coming years.”

About Deluxe Recycling

Established in 1999, Deluxe is a leading Indian plastic recycling company focused on difficult to recycle multilayer plastics (MLP) such as Used-Beverage-Cartons (UBC) and sachets. Started as a family business by founder Jignesh Shah, Deluxe has grown tenfold in the past 20 years and works with government and leading multinational automotive manufacturers in India, having captured 90%+ of the recycled seat board market for rickshaws and established a standard for state governments to buy recycled pallets for warehousing needs.

About Circulate Capital 

Circulate Capital is a leading environmental impact investor advancing the circular economy for plastics in high-growth markets – with activities and teams in 10+ countries. Partnering with global brands and financial institutions, we transform supply chains at scale by delivering economic, social, and environmental value. Launched in 2018 by supply chain experts and leading corporations - including PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC, and Mondelēz International, the firm is scaling solutions across the recycling and innovative materials value chains. Founded in and focused initially on South and Southeast Asia, the firm now targets untapped opportunities in high-growth markets to spark further development in the emerging circular economy.

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