Recycled plastic, renewed worries

An environment ministry rule from 2022 takes effect on 1 April, mandating quotas for using recycled PET (rPET), which is made from used bottles and packaging. While some companies have partnered with manufacturers and invested in recycling, others are scrambling for food-grade plastic.

While India has 18 manufacturers of food-grade rPET, only five of them are licensed by the food safety regulator, data from the Food Safety and Standards Authority of India (Fssai) showed, posing a shortage of sufficient recycled material. Industry executives said while capacities are available, they are yet to receive clearance from Fssai.

“The food industry is feeling the heat right now. Good quality, recycled PET is available; however, some approvals and formalities which are required by Fssai need to be expedited,” a packaging industry executive said on the condition of anonymity.

Queries emailed to Fssai remained unanswered.

According to the 2022 rule, rigid plastic such as shampoo containers must have 30% recycled content, flexible packaging used for detergents and flour 10%, and multi-layer packaging 5% by 1 April, 2025. These quotas will increase every year. The so-called extended producer responsibility (EPR) guidelines aimed to reduce plastic waste by holding producers accountable for recycling some of the plastic they introduce into the market. Fssai approval is mandatory for rPET used in foods and beverages.

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Earlier this year, packaging company UFlex Ltd announced plans to build two recycling plants in Noida, with a ₹317 crore investment. The new facilities are expected to open by the end of FY26.

“Many brand owners have approached us for rPET, indicating their readiness to transition toward sustainable packaging solutions. There is a broad consensus that the EPR mandate is a positive step by the government, and companies are taking steps to ensure compliance,” said Jeevaraj Gopal Pillai, director of sustainability and president of flexible packaging and new product development at UFlex.

India requires about 1,200 kilo tonnes of rigid PET every year. Of this, 30% or 360 kilo tonnes of recycled plastic is required this upcoming fiscal, according to industry estimates. Adding flexible and multi-layer packaging, the total requirement stands at 435 kilo tonnes in FY26.

Some of the larger packaging companies have already stepped up to the task.

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SLMG Beverages, among the largest bottlers of Coca-Cola in India, has partnered with Dalmia Polypro to build capacity. “In August of 2023, we launched our colas in recycled PET,” said Paritosh Ladhani, joint managing director of SLMG Beverages, one of the largest bottlers of Coca-Cola in North India. “We are also investing in our own recyclable PET plants. We have partnered with Dalmia Polypro; we are setting up that plant in Gorakhpur. This will be operational in another 16 months. Currently, SLMG is procuring recycled PET from other suppliers like Sri Sankara and Ganesha Ecosphere, Ladhani added.

Kandhari Global Beverages, another Coca-Cola bottler, is building a 60,000-tonne recycled plastics facility. “We should be partially operational by April-May and fully operational by December. It will take care of 100% of our capacity. We will have enough capacity to share with other bottlers if they want,” managing director Varinder Pal Singh Kandhari said.

“While government agencies are working toward adding more certified suppliers, industry stakeholders believe that policy support and more rigour in certification will accelerate this transition,” Pillai said.

To be sure, the EPR guidelines also provide mechanisms for cases where the recycled plastic mandate cannot be met.

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“Despite the three-year transition period, key challenges remain, including limited availability of food-grade recycled PET and regulatory approvals from the Food Safety and Standards Authority of India or Fssai. The issue was recently raised in Parliament, and while the minister acknowledged the concerns, the response remained general without any commitment to an extension,” a beverage industry executive said on the condition of anonymity.

Last year, chemical producer Indorama Ventures, through a subsidiary, formed a joint venture with PepsiCo bottler Varun Beverages to establish several greenfield PET recycling facilities in India. The joint venture is building two PET recycling plants, in Kathua and Khurdha.

“The project is on track and the production will start this year, and we feel that we should not be short of our recycled PET obligation. We are looking at starting early in the third quarter,” Ravi Jaipuria, chairman of Varun Beverages said during the company’s December quarter earnings call last month.

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