Dalmia Polypro Industries and Circulate Capital to strengthen India’s circular economy
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 made a strategic investment in Mumbai-based Dalmia, a market-leading and sustainability-focused PET and polyolefin recycler. 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.
Polyethylene terephthalate (PET) plastic, most commonly in the form of plastic bottles, accounts for over 10% of plastic waste in India. Although 90% is collected and recycled, the recycled PET is not up to a high standard, resulting in only one instance of reuse and limited circularity. By moving beyond traditional practices of downcycling PET and through the adoption of technology, Dalmia produces high quality recycled PET as well as Polyolefin flakes and granules with applications across textiles and packaging. The company’s materials are used by world-renowned apparel brands and packaging manufacturers.
In 15 years, Dalmia has recycled more than 120,000 metric tonnes of plastic waste, the equivalent of more than 2,600 humpback whales, and plans to triple recycling capacity in the next five years. Dalmia’s quality materials meet Global Recycling Standards, REACH regulations of the European Union and are ISO compliant.
Speaking on the investment, Aditya Dalmia, Managing Director, Dalmia, said, “As a major PET recycler in India, a focus on innovation and technology underpins our ability to deliver consistent and reliable materials for customers. We are well positioned to lead the way in developing food-grade applications in the country, enabling us to achieve maximum value for plastic waste collected. With Circulate Capital’s support we will grow our recycling capacity and expand our capabilities to foster plastic circularity for the benefit of the environment and the entire value chain.”
Commenting on this investment, Rob Kaplan, CEO, Circulate Capital said, “Dalmia is playing a pivotal role in transforming the waste management and recycling industry by increasing the reuse of plastic and developing food-grade application capabilities. Beyond creating economic value, the company’s sustainability focus and support for local communities generates significant environmental and social benefits. Alongside our partners, we are excited to support Dalmia on its growth journey.”
To date, Circulate Capital has committed US$39 million to form the largest investment portfolio dedicated to fighting plastic pollution and advancing the circular economy for plastic waste in India. The portfolio includes six local small and medium enterprises (SMEs) that are pioneers in the waste management sector and are disrupting the recycling value chain. In concert, the portfolio aims to materially improve the industry in India 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 and Dalmia); scaling digitization (Recykal); and, scaling collection and sorting (Nepra Resource Management) .
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.