Deluxe Recycling Opens New Plant In Gujarat To Boost Plastic Recycling Capacity

Deluxe Recycling, a premier multi-layered plastic recycling company, is driving strategic expansion with the inauguration of a new recycling plant in Sarigam, Gujarat. The company has been at the forefront of innovating new technologies to recycle UBCs (Used Beverage Cartons) and MLPs (Multi-Layered Plastic), thereby significantly relieving the pressure on overburdened landfills. With this new facility, Deluxe is set to boost its capacity from 13,000 TPA to 27,400 TPA across two locations, cementing its position as one of South Asia's largest MLP recyclers.  By FY2030, the company aims to recycle more than 200,000 tons of UBCs and MLPs and contribute substantially to India's waste management. The investment to build the 1.5 lakh sq. ft Sarigam plant is around Rs 50 crores.

According to a World Economic Forum report, in 2023, India generates about 9.4 million tons of plastic waste annually, of which only 50 percent is collected. MLP waste is typically considered to have no value and is very difficult to recycle, making it a top polluter in plastic packaging. If it is collected at all, it is usually used for fuel, incineration, or co-processing at cement plants. Deluxe has established a scalable ecosystem for the collection of MLP by collaborating with and compensating a network of aggregators and small material recovery facilities (MRF) to gather and separate MLP waste. The company then uses proprietary, in-house developed technology to manufacture a variety of high-demand heavy, rigid products. Deluxe currently supplies 90 percent of the recycled seatboards to the automotive industry, which means nearly every rickshaw driver sits on one of its recycled seats.

Funding from Circulate Capital, a leading circular economy investment firm, fuelled the venture's expansion, resulting in increased capacity and the creation of over 150 jobs in Gujarat.