Dalmia Polypro Industries, a market-leading and sustainability-focused company in India that produces recycled materials from post-consumer plastic waste, has received a commitment for an ECB loan of US$ 30 million (approximately Indian Rs 246 crore) from the US International Development Finance Corporation (DFC) to help fund a greenfield recycling facility in Nashik, Maharashtra.
In a ceremonial signing event in Mumbai, Ajay Rao, DFC’s Regional managing director, South Asia, highlighted the commitment for the US$ 30 million ECB loan to Dalmia Polypro, which builds on DFC’s significant commitments to India’s private sector in priority sectors where there is enduring demand for high-quality, impactful projects.
“DFC is proud to support this transaction. This investment will provide crucial financing to support improvements to India’s plastic waste value chain and expand the country’s capacity to reduce plastic waste. It also builds on DFC’s work to provide financing to support India’s development of more robust waste management services,” said Ajay Rao, DFC’s Regional managing director, South Asia.
The DFC-supported greenfield recycling facility in Nashik, Maharashtra will advance Dalmia Polypro’s vision of accelerated growth to redefining plastic waste for a better future. Growing awareness about sustainable use of materials coupled with commitments from various brand owners and legislation enacted requiring recycled content in food packaging has created a need for high quality recycled plastic, for even the most sensitive applications.
The new upcoming facility would be one of the most advanced and unique for recycling post-consumer plastic waste and will meet this growing demand with a total anticipated recycling capacity of 171,000 metric tons per year. With this new facility, Dalmia Polypro will be positioned to lead the way in developing food-grade recycled materials and applications.
The facility will produce high quality recycled PET (rPET), PP (rPP) and HDPE (rHDPE) flakes, and granules. Operations will be partially powered by renewable energy and biofuel, with LEED certified infrastructure, ensuring zero liquid discharge. This achieves maximum value for the plastic waste collected and processed, fostering plastic circularity and benefiting the entire value chain.
Dalmia Polypro’s, managing director, Aditya Dalmia said, “I am delighted to welcome DFC as our partner for our upcoming state-of-the-art greenfield recycling project in Nashik, Maharashtra. In partnership with DFC, we aim to build one of India’s most advanced rPET recycling facilities and make a meaningful contribution to tackling what is arguably India’s most intractable challenge. For Dalmia Polypro, it is an investment towards the future of our people and environment.”
Mike Hankey, consul general at the US Consulate General, Mumbai said, “President Biden has named climate change the existential threat of our time and has called on DFC to support investment in climate mitigation, resilience, and adaptation. Dalmia’s new facility will increase recycling capacity in India while creating jobs and providing economic opportunities for informal workers and small and medium-sized enterprises in the plastics recycling supply chain. The United States and India are crucial partners in addressing climate change, and this project exemplifies our shared determination to support the planet in ways that drive prosperity for all.”
Intellecap acted as the exclusive and the sole advisor to Dalmia Polypro for this transaction.
