Landmark Circular Economy Initiative to Recycle 32,000 Tonnes of Plastic Waste and Reduce 15,000 Tonnes of CO2 Annually

Hyderabad, 10th September 2024 – In a historic move towards sustainable waste management in India, Re Sustainability, Asia’s leading integrated sustainability solutions provider and Sharrp Ventures, the investment office of the Harsh Mariwala family, proudly announce their collaboration to launch a pioneering Plastics Circularity Initiative in Hyderabad, Telangana, and Raipur, Chhattisgarh.

The goals of this initiative are twofold: to increase the supply of very high-quality recycled polyolefins for the FMCG industry and to create sustained environmental and social impact. Currently, the FMCG sector in India faces a critical challenge in sourcing high-quality recycled materials, which limits their ability to meet sustainability targets and reduce reliance on virgin plastics. By capturing and processing 32,000 tonnes of waste and reducing 15,000 tonnes of CO2 emissions annually, this project aims to produce over 9,000 tonnes of superior recycled polymers each year, providing a reliable supply of these materials for various FMCG and other applications. Over the next five years, this initiative intends to evolve into a nationwide, large-scale recycled polymers enterprise, reducing environmental impact and setting a new standard for responsible waste management practices.

Hyderabad and Raipur have been strategically chosen for this initiative due to their unique demographics and waste management challenges. Hyderabad, as a major metropolitan city, generates a significant amount of plastic waste, making it an ideal location to implement large-scale recycling processes and demonstrate the impact of advanced waste management technologies. Raipur, representing smaller urban centers, faces different but equally critical waste management issues. By implementing the project in both cities, the initiative can address diverse challenges, create scalable solutions, and set a replicable model for other cities across India.

Collaborative Effort: Sharrp Ventures, Re Sustainability, and Marico Innovation Foundation
Marico Innovation Foundation (MIF), subsidiary of Marico Limited, identifies and supports the scale up of disruptive Indian innovations with the potential to create long-lasting socio- economic and environmental impact in India. In 2022, MIF embarked on a mission to address plastic waste through its playbook “Innovation in Plastics: The Potential and Possibilities,” which highlighted the urgent need for a resilient circular economy in India. Further to the same, Re Sustainability and Sharrp Ventures have come together to launch Plastics Circularity Initiative, with MIF being the knowledge partner.

Re Sustainability, with over 30 years of experience in waste management across 11 countries, brings its extensive expertise and innovative approaches to this initiative. Their commitment to sustainable practices has positioned them as a global leader in the field, managing over 8 million tonnes of waste annually. Sharrp Ventures, the investment office of the Harsh Mariwala family, is involved by providing the necessary risk capital and strategic support, ensuring the initiative’s scalability and success. Together, these entities are leveraging their collective expertise, resources, and innovative approaches to set new standards in sustainability through this project.

Social Impact
Beyond waste management, the initiative also aims to drive social inclusion by providing direct jobs for over 370 people in the first phase of this initiative, with a projected 75% target of women in the workforce, and indirect livelihoods for 2,000 people. By involving local communities in effective waste segregation and recycling through various engagement programs, the initiative promotes active participation and responsibility at the grassroots level.

Closing the Circular Loop
The essence of this Circularity Initiative lies in creating a self-sustaining, at-scale, zero-waste-to-landfill, circular economy business model in the plastics waste management industry. The initiative includes 100% digital end-to-end traceability, ensuring transparency and accountability. It also aims to include citizens in creating an impact through sustained and effective segregation of waste at the household level in Hyderabad and Raipur. Furthermore, the project leverages indigenous and global technology innovations across the value chain of plastics waste management to ensure scalability in the future. One of the facilities in Hyderabad is intended to be a fully automatic sorting facility, utilising advanced technologies such as AI-driven optical sorting provided by Ishitva Robotics Systems. This cutting-edge technology ensures precise sorting, significantly reduces manual labor, and sets a new standard for efficiency. The ultimate goal is to replicate this project in several Indian cities and the Global South, creating an even larger social, environmental, and economic impact.

Mr. Harsh Mariwala, Founder and Chairman – Marico Limited, said, “This initiative represents a significant step towards building a circular economy that benefits both the environment and society. By increasing the supply of high-quality recycled materials and creating sustainable waste management practices, we are setting a new standard for innovation and responsibility in the industry. Our goal is to inspire other regions to adopt these scalable models, fostering a more sustainable future for all.”

“This pioneering circularity initiative is a significant milestone in India’s circular economy journey”, said Mr. Masood Mallick, MD and CEO of Re Sustainability Limited, “By leveraging state-of-the-art technology, together with social inclusion, we aim to tackle the challenge of increasing plastic waste and avoid recyclables from reaching landfills. There is untapped economic value, resource conservation, carbon abatement opportunity as well as pollution mitigation impact associated with every kilogram of waste we generate; harnessing this ‘value’ across all these dimensions by way of this initiative is a significant step towards achieving a more circular FMCG industry in India. By re-evaluating how we manage and repurpose waste, we can transform it into valuable resources, ignite innovation, and pave the way for a cleaner, more sustainable environment and a better future for generations to come” he added.

About Re Sustainability Limited:
Re Sustainability Limited (ReSL), a KKR-backed company, is one of Asia’s leading providers of comprehensive environment management services. ReSL offers a wide range of environmental services and infrastructure solutions, and is also the largest recycling, resource recovery and circular economy company in India.

ReSL has a growing global footprint, including over 100 operating locations across India, Singapore, the UAE, Qatar, Saudi Arabia, Kuwait, Oman, Tanzania and USA, and a dedicated workforce of over 22,000 people.

For more information, please visit resustainability.com

About Sharrp Ventures:
Sharrp Ventures is a multi-asset class investment firm with exposure across listed equities, unlisted companies, and private equity funds primarily in India and USA. The firm manages the proprietary capital of the Harsh Mariwala family – founding family of Marico Ltd, one of India’s most well respected FMCG companies with a market cap of ~$8.5Bn.

With deep networks across the entrepreneurial ecosystem, Sharrp invests long-term patient capital and supports its portfolio companies through multiple stages of their growth and evolution.

Sharrp is an early and consistent partner to gritty entrepreneurs who are building enduring companies. The firm has delivered top decile returns including early investments in industry defining companies such as Nykaa and Mama Earth in India.

For more information, please visit sharrpventures.com

About Marico Innovation Foundation:
Marico Innovation Foundation (MIF) is a philanthropic institution committed to fostering and catalyzing India’s innovation landscape, and groundbreaking technologies which can create large-scale impact for millions of people.

MIF’s mission is to identify disruptive innovations with the potential to create long-lasting socio-economic and environmental impact in India and provide them with comprehensive support to increase their visibility, opportunities, and probability of success.