Circulate Capital, the Singapore-based investment management company focused on preventing plastic from leaking into the ocean and advancing the circular economy, today announced that the Circulate Capital Ocean Fund (CCOF) has committed to invest US$19 million in four leading companies that are using technology and innovation to scale and transform India’s waste management and recycling value chain. Established in partnership with PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, and Chevron Phillips Chemical, CCOF is the world’s first investment fund dedicated to combat ocean plastic in South and Southeast Asia.
Today’s commitments to Srichakra Polyplast (Srichakra), Rapidue Technologies (Recykal), Deeya Panel Products (Ricron) and Dalmia Polypro Industries (Dalmia) combined with previously announced investments in Lucro Plastecycle (Lucro) and Nepra Resources Management (Nepra) will see more than US$39 million invested in India. This also forms part of Circulate Capital’s commitment to dedicating half of CCOF’s US$106 million of capital to the waste management and recycling industry in India.
Scaling and transforming India’s waste management and recycling value chain with catalytic capital
In concert, the portfolio aims to materially improve the local industry by driving scale to address key systemic gaps and pain points within the ecosystem, such as fragmentation, lack of traceability and low quality of recycled materials through three key innovation strategies – scaling upcycling to transform waste into value (Lucro Plastecycle, Srichakra Polyplast, Ricron, Dalmia Polypro); scaling digitization (Recykal); and, scaling collection and sorting through collaboration with cities (Nepra Resource Management) – the portfolio will transform the country’s waste management and recycling value chain.
Ravindra Venkata, Co-founder and CEO, Srichakra Polyplast (Hyderabad), said, “In 2010, we pioneered the plastic recycling process in India and with Circulate Capital’s support we aim to enhance our offering by producing larger quantities of recycled material to higher specifications that allow for new product applications, including food-grade packaging, in the future.”
Abhay Deshpande, Founder, Recykal (Hyderabad), said, “We are proud to be India’s first “waste-commerce” company, transforming the waste management and recycling industry and setting new standards through digital solutions. We believe that by connecting players that would have otherwise not known each other, we can enable an efficient and effective industry, and transparent and traceable transactions between all stakeholders. Our partnership with Circulate Capital will see our offering reach more markets and build a complete digital ecosystem.”
Commenting on the long-term opportunity, Rahul Chaudhary, Co-founder and CEO, Ricron (Ankleshwar), said, “At Ricron we recognize the blue ocean opportunity to capture the value of difficult to manage, multi-layer plastic waste. This drove us to spearhead innovation to upcycle this waste into high quality, eco-friendly materials for the building industry. Our efforts will help manage continued waste plastic generation and solve the growing housing and infrastructure demands of today.”
Commenting on Circulate Capital’s investment, Aditya Dalmia, Managing Director, Dalmia Polypro (Mumbai), said, “As a major PET recycler in India, a focus on innovation and technology underpins our ability to deliver consistent and reliable recycled materials for customers and places us ahead of the curve in developing food-grade applications in the country.”
Portfolio to drive maximum environmental, social and economic impact
Through the collective effort of CCOF’s portfolio companies, 5 million metric tonnes of plastic pollution will be prevented from entering the environment by 2030, which is the equivalent to nearly half the amount of plastic waste India generates in a year. As a result, 6.9 million tonnes of greenhouse gas emissions will be avoided, the equivalent of one year emissions from 1.5 million cars.
In addition to creating new jobs, the investments also ensure increased access to digital modes of payment and banking, and equitable and inclusive opportunities for locals to participate in the waste management and recycling value chain regardless of gender, role and position in society.
Commenting on CCOF’s latest investments, Rob Kaplan, CEO and Founder, Circulate Capital said, “At a time of tremendous uncertainty, the six companies in our India portfolio are positioned to help the country build back sustainably and transform from a linear to circular economy. Combined, they will directly create over 6,600 safe, stable and dignified jobs while preventing 5 million metric tonnes of plastic pollution from entering the environment by 2030. Supported by the Swachh Bharat Mission and strong demand from brand owners, India is well placed to provide a blueprint for leveraging plastic circularity to improve livelihoods and build back better globally.”
The catalytic capital provided through CCOF’s investments will fund capacity expansion to help the portfolio companies embark on their next stage of growth. In addition to financing, Circulate Capital provides mentorship, technical expertise as well as introductions to its network of partners along the value chain so that they can thrive for the long term.
The CCOF’s portfolio includes seven companies in the waste management and recycling industry, with six in India and one in Indonesia.
About Circulate Capital
Circulate Capital is an investment management firm dedicated to incubating and financing companies that prevent ocean plastic. We focus on the prevention of mismanaged plastic waste in countries located in South Asia and Southeast Asia, regions that contribute disproportionately to ocean plastic pollution primarily because they often lack investment in critical waste and recycling infrastructure to manage the problem. We were created in collaboration with Ocean Conservancy, and our founding investors include PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company LLC.
Circulate Capital invests in and supports start-ups, organizations and small and medium-sized enterprises across the entire plastic value chain, from innovations in material to advanced recycling technologies. It seeks to mobilize catalytic capital into the waste management and recycling industry to prove that investing in this sector is scalable and can generate competitive returns, while moving to solve the ocean plastic crisis.
About Srichakra Polyplast Pvt Ltd
Founded in 2010, Srichakra Polyplast (India) Pvt Ltd is a leading plastic recycling and waste management company based in Hyderabad, India. Srichakra produces superior PET and olefin flakes and granules from plastic waste. We specialise in offering high-quality recycled products in large volumes for the packaging industry. We are constantly striving to improve upon our best capabilities to help brand owners reduce virgin plastic use, and this work has resulted in the development of our technically advanced bottle-to-bottle solutions and food-grade recycled pellets. For ten years, Srichakra has championed the transformation of locally sourced plastic waste and strives to divert plastic from the ocean and encourage the advancement of the circular economy. Visit https://srichakra.in/ for more information.
About Rapidue Technologies Pvt Ltd (Recykal)
Recykal is an end-to-end digital solutions provider, facilitating transactions for all stakeholders across India’s waste management and recycling value chain. Recykal’s unique, integrated approach connects waste generators, processors, recyclers and brand owners to solve some of the biggest challenges faced by the industry including demand-supply mismatch and lack of transparency and traceability. As India’s first digital waste-commerce (w-commerce) company, it enables more efficient and effective dry waste management as well as transparent and traceable material flows and transactions through its digital marketplace, Smart Centre Solutions and EPR Solutions. Since 2015, Recykal has responsibly channelled supply and demand for dry waste and recyclable materials, with the aim of having a positive environmental and social impact in India. For more information, please visit: https://www.recykal.com/
About Deeya Panel Products Pvt Ltd (Ricron)
Ricron is a plastic waste recycling company based in Gujarat, India, that specialises in converting low value multi-layer plastic (MLP) waste into high quality, eco-friendly materials for furniture, housing, roofing, construction and other building applications. Developed through an innovative proprietary process, Ricron’s panels are a high utility and cost-effective substitute to common materials, such as plywood and metal and cement roofing, offering a sustainable green building solution for emerging and developed markets. Established in 2013, the company’s drive towards increasing the circularity of plastic is underpinned by its continuous pursuit of innovation and passion for delivering sustainable products for responsible consumption. For more information, please visit: http://www.ricron.com
About Dalmia Polypro Industries Pvt Ltd
Dalmia Polypro Industries Private Limited (Dalmia) is a market-leading, sustainability-focused plastic recycling company based in Mumbai, India. The company specialises in recycling locally sourced Polyethylene Terephthalate (PET) and a variety of Polyolefin’s into high quality plastic materials for the quality sensitive requirements of world-renowned apparel brands, and consumer and industrial packaging manufacturers. Established in 2006, Dalmia is a major supplier of recycled plastic materials in India by volume. With a strong focus on innovation and technology, the company is well positioned to lead the way in developing food-grade applications in the market. The company is passionate about building a sustainable plastic waste management value chain by diverting local plastic waste from landfill by recycling it into valuable materials for reuse. For more information, please visit: https://dalmiapolypro.in/