SLMG teams up with Dalmia Packaging for PET bottle recycling plant in India

INDIA – SLMG Beverages, Coca-Cola India’s independent bottler, is teaming up with Dalmia Packaging to establish a PET bottle recycling plant in India.

The joint venture between the two companies will invest Rs0.9-1bn (US$10.7m-US$11.99m) in the development of the plant.

With an annual capacity of 36,000mt and a production output of 24,000mt plastic for PET bottles, the facility is poised for significant scale.

Leveraging Dalmia Packaging’s expertise in plastic sourcing, the JV aims to streamline the recycling process.

The plant’s location has been strategically chosen between Lucknow and Kanpur in Uttar Pradesh, optimizing accessibility and operational efficiency.

Currently, machinery procurement for the project is underway, marking a crucial phase in its implementation.

Expected to contribute 20% of SLMG’s sales, this food-grade plastic recycling plant holds considerable promise.

To further enhance operations, SLMG has appointed Costin Mandrea, a seasoned Coca-Cola industry expert, as CEO, with a focus on professionalizing operations and positioning the company for entry into capital markets within the next two to three years.

Operating seven plants with a daily bottling capacity of 410m units, SLMG stands as a significant supplier of Coca-Cola in Uttar Pradesh, satisfying 90% of the state’s demand and maintaining a robust presence in other states like Uttarakhand, Bihar, and Madhya Pradesh.

With an extensive network that reaches over 300 million people through 1.5 million outlets and over 1,500 distributors, SLMG is poised for continued growth and market penetration.

SN Ladhani, chairman & managing director of SLMG Beverages, highlighted the company’s proactive stance, expressing optimism about commencing production within two years and advocating for concessions to align with other industries involved in recycling, as quoted by The Hindu Businessline.

Meanwhile, in collaboration with Reliance Retail, Coca-Cola India launched a PET collection and recycling initiative titled ‘Bhool Na Jana, Plastic Bottle Lautana’ in January.

The project introduces reverse vending machines (RVMs) and collection bins in Reliance Retail stores across Mumbai and plans to expand nationwide.

Initially implemented in 36 stores, the initiative aims to reach 200 stores by 2025, targeting the collection of 500,000 PET bottles annually during the pilot phase. RIL will manage the recycling process for the collected PET bottles.

This initiative aligns with Coca-Cola’s commitment to collect and recycle the equivalent of 100% of its packaging output, part of its ‘World Without Waste’ strategy.

Greishma Singh, Coca-Cola India, and Southwest Asia Customer and Commercial Leadership vice-president, emphasized the partnership’s role in generating awareness and offering shoppers a convenient way to recycle PET bottles while shopping.

Such collaborations represent a significant step towards responsible waste management, transitioning from a linear to a circular economy model.

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