In a significant step towards sustainability, Re Sustainability, a waste management business supported by KKR, and Sharrp Ventures, the family office of Marico Chairman Harsh Mariwala, have teamed up to introduce an inventive plastic circularity initiative. With an emphasis on recycling and repurposing plastic materials to fulfil the needs of the fast-moving consumer goods (FMCG) industry, this cooperation seeks to address the growing problem of plastic waste in India. The project is a reaction to the Plastic Waste Management rules that India plans to implement in FY25.
Addressing Plastic Waste in the FMCG Industry
Marico’s legendary Parachute brand has led India’s FMCG industry for many years; in the 1980s, their coconut oil product, which was packed in plastic bottles, completely changed customer behaviour. However, Harsh Mariwala highlighted the need to reduce plastic usage through sustainable techniques as the impact of plastic on the environment becomes a major concern.
In his remarks during the joint venture launch, Mariwala outlined his goals for the Plastics Circularity Initiative: “Although Marico has led the way in using plastic packaging to gain market share, I have been concerned about the environmental impact. In order to fulfil that obligation, the project we are introducing today is essential.”
Mariwala’s Vision for Sustainability and Innovation
This new endeavour is a result of Harsh Mariwala’s unwavering support for innovation and commitment to sustainability. 95% of the plastic used in Marico products is recyclable, he noted, but getting high-quality recycled materials is challenging in the absence of appropriate infrastructure for segregation and processing.
“We have been working on identifying innovations in plastics over the last year and a half, with the goal of increasing the use of recycled plastics,” Mariwala added. “Our efforts culminated in this partnership with Re Sustainability, whose operations in Hyderabad stood out for their innovative approach to waste management.”
Scaling the Plastic Circularity Initiative Nationwide
At a cost of about ₹50 crore, the Hyderabad prototype facility can handle up to 600 tonnes of plastic garbage per day. The objective is to bridge the shortage of recycled materials for packaging by establishing a consistent supply of high-quality recycled polyolefins for the FMCG sector.
“Integration across all elements of the waste ecosystem—collection, transport, aggregation, sorting, recycling, and downstream production of high-quality recycled material—will ensure the sustainability of this initiative,” stated Masood Mallick, Managing Director and CEO of Re Sustainability Limited. A Parachute bottle should eventually re-enter the marketplace as a Parachute bottle.
Meeting Regulatory Requirements for Plastic Waste Management
The impending Plastic Waste Management rules, which are scheduled to be implemented in FY25, are one of the main forces behind this endeavour. Under these regulations, manufacturers, importers, and brand owners in the FMCG sector are required to recycle and reuse plastic materials. With the government taking a more stringent stand on single-use plastics and pushing for circular economy models, Sharrp Ventures and Re Sustainability’s joint venture is well-positioned to adapt to the changing regulatory environment.
The partnership offers a scalable solution for recycled plastics that can be easily incorporated into the supply chains of FMCG businesses, all while remaining fully compliant with these new regulations. The joint venture will be vital because of its utilisation of cutting-edge technology and environmentally friendly methods.
Conclusion: A Step Toward a Sustainable Future
India’s journey towards plastic circularity has reached a major turning point with the partnership of Sharrp Ventures and Re Sustainability. This program, which aims to handle 32,000 tonnes of garbage annually, is expected to have a significant influence on the FMCG sector. It will assist enterprises in reducing their dependency on virgin plastic and ensuring compliance with the recently implemented Plastic garbage Management rules.
This joint venture is an excellent illustration of how companies may work together to address important environmental challenges while promoting innovation and economic progress as India moves towards a more sustainable future. The initiative’s success may encourage other FMCG businesses to follow suit, lowering the country’s plastic footprint and promoting a cleaner, greener India in the process.
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