Circulate Capital commits $19 million investment in 4 waste management cos in India

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December 10, 2020 4:29 PM

Circulate Capital on Thursday said the Circulate Capital Ocean Fund (CCOF) has committed to invest USD 19 million (about Rs 140 crore) in four companies that are using technology and innovation to transform India's waste management and recycling value chain.

interest waiver schemeIn view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the government had in May enhanced the borrowing limit of the states by 2 per cent of their GSDP.

Circulate Capital on Thursday said the Circulate Capital Ocean Fund (CCOF) has committed to invest USD 19 million (about Rs 140 crore) in four companies that are using technology and innovation to transform India’s waste management and recycling value chain. The four companies selected are Srichakra Polyplast, Rapidue Technologies (Recykal), Deeya Panel Products (Ricron) and Dalmia Polypro Industries, a statement said. Circulate Capital is a Singapore-based investment management company focused on preventing plastic from leaking into the ocean and advancing the circular economy.

Established in partnership with PepsiCo (its first investor), 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. CCOF’s portfolio includes seven companies in the waste management and recycling industry, including six in India and one in Indonesia.

“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 will see more than USD 39 million (about Rs 287.4 crore) invested in India,” the statement said. This also forms part of Circulate Capital’s commitment to dedicating half of CCOF’s USD 106 million of capital to the waste management and recycling industry in India, it added.

“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,” Circulate Capital CEO and Founder Rob Kaplan said. Combined, these companies 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, he added.

“Supported by the Swachh Bharat Mission and strong demand from brand owners, India is well placed to provide a blueprint for plastic circularity to improve livelihoods and build back better globally,” he said. Srichakra (Hyderabad) and Dalmia (Mumbai) pioneered plastic recycling in India and are poised to become first movers in developing food-grade, bottle-to-bottle recycling. Ricron (Ankleshwar) recognised that difficult to manage, low value multi-layer plastic waste was one of the largest contributors to ocean pollution and have spearheaded innovation to upcycle this waste to develop high quality, eco-friendly materials for building applications.

Lucro (Mumbai) harnesses the possibilities of flexible plastic waste to manufacture recycled flexible packaging products, truly closing the loop on this difficult to recycle material, while Nepra (Ahmedabad) is the largest collector and processor of dry waste in India. Recykal (Hyderabad) is India’s first ‘waste-commerce’ company with digital solutions enabling an efficient and effective waste and recycling industry and transparent and traceable transactions between all stakeholders.

In a separate statement, Recykal said the capital infusion will enable it to expand the network of Recykal Points to over 100 locations in tier I and II cities pan-India. Its digital footprint for waste collection and channelisation include more than 4 lakh consumers, over 1,000 businesses, 500 aggregators and waste management companies, more than 100 recyclers and 30 municipalities.

“We believe that our unique proposition of providing the industry with a complete ecosystem to track and trace material flows and transactions brings unprecedented value to all key players along the value chain. By connecting stakeholders, we are also driving efficiency to promote higher throughputs in recycling,” Recykal founder Abhay Deshpande said. He added that the investment will allow it to bring offerings to more markets in India and position it well to lead a digital revolution of the country’s waste management and recycling industry.

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