Circulate Capital Now Has the Largest Investment Portfolio Focused on Fighting Plastic Pollution in India
Singapore--(Newsfile Corp. - December 10, 2020) - Circulate Capital, the Singapore-based investment management company focused on preventing plastic from leaking into the ocean and advancing the circular economy, today announced that the Circulate Capital Ocean Fund (CCOF) has committed to investing US$19 million in four leading companies that are using technology and innovation to scale and transform India's waste management and recycling value chain. Established in partnership with PepsiCo (NASDAQ: PEP) (its first investor), Procter & Gamble (NYSE: PG), Dow (NYSE: DOW), Danone, Chanel, Unilever (NYSE: UN), The Coca-Cola Company (NYSE: KO), and Chevron Phillips Chemical (CP Chem), CCOF is the world's first investment fund dedicated to combating ocean plastic in South and Southeast Asia.
Our Portfolio's Impact in India
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Today's commitments to Srichakra Polyplast (Srichakra), Rapidue Technologies (Recykal), Deeya Panel Products (Ricron) and Dalmia Polypro Industries (Dalmia) combined with previously announced investments in Lucro Plastecycle (Lucro) and Nepra Resources Management will see more than US$39 million invested in India. This also forms part of Circulate Capital's commitment to dedicating half of CCOF's US$106 million of capital to the waste management and recycling industry in India.
Commenting on CCOF's latest investments, Rob Kaplan, CEO and Founder, Circulate Capital, said, "At a time of tremendous uncertainty, the six companies in our India portfolio are positioned to help the country build back sustainably and transform from a linear to circular economy. Combined, they will directly create over 6,600 safe, stable and dignified jobs while preventing 5 million metric tonnes of plastic pollution from entering the environment by 2030. Supported by the Swachh Bharat Mission and strong demand from brand owners, India is well placed to provide a blueprint for plastic circularity to improve livelihoods and build back better globally."
Scaling and transforming India's waste management and recycling value chain with catalytic capital
CCOF's new portfolio companies include small and medium enterprises (SMEs) that are pioneers in the waste management sector and are disrupting the recycling value chain. In concert, its portfolio aims to materially improve the industry in India by driving scale to address key systemic gaps and pain points within the waste ecosystem, such as fragmentation, lack of traceability and low quality of recycled materials through three key innovation strategies:
- Scaling upcycling to transform waste into value
- Srichakra (Hyderabad) and Dalmia (Mumbai) pioneered plastic recycling in India and are poised to become first movers in developing food-grade, bottle-to-bottle recycling.
- Ricron (Ankleshwar) recognized that difficult to manage, low value multi-layer plastic waste was one of the largest contributors to ocean pollution and have spearheaded innovation to upcycle this waste to develop high quality, eco-friendly materials for building applications.
- Lucro (Mumbai) harnesses the possibilities of flexible plastic waste to manufacture recycled flexible packaging products, truly closing the loop on this difficult to recycle material.
- Scaling digitization
- Recykal (Hyderabad) is India's first "waste-commerce" company with digital solutions enabling an efficient and effective waste and recycling industry and transparent and traceable transactions between all stakeholders.
- Scaling collection and sorting in collaboration with cities
- Nepra (Ahmedabad) is the largest collector and processor of dry waste in India. By combining a people-centric approach with technology-driven processes and solid infrastructure, Nepra offers an integrated, efficient and scalable waste management solution that aims to transform traditional waste management models.
Transformation of India's recycling industry is a blueprint for building back stronger
The waste management and recycling industry in India, where informal sector workers play a critical role, was especially affected by the COVID-19 pandemic. According to research by GA Circular, during lockdowns, fewer than 10% of recyclers were operating and many today are still not able to return to full capacity. Coupled with increased use of single-use plastics, there is a heightened urgency for action to build back better. India's waste management and recycling ecosystem are uniquely positioned to revolutionize the solutions necessary to build back stronger and more sustainably post the COVID-19 pandemic.
By scaling these six companies, 5 million metric tonnes of plastic pollution will be prevented from entering the environment by 2030, which is equivalent to nearly half the amount of plastic waste India generates in a year. As a result, 6.9 million tonnes of greenhouse gas emissions will be avoided, the equivalent of one year's emissions from 1.5 million cars.
In addition to creating over 6,000 new jobs, the investments also ensure increased access to digital modes of payment and banking, and equitable and inclusive opportunities for locals to participate in the waste management and recycling value chain regardless of gender, role and position in society.
CCOF's portfolio includes seven companies in the waste management and recycling industry, including six in India and one in Indonesia.
Cindy Stoller, +1 917-331-0418
Nitanshi Sharma, +91 70005 84756
Akhila Natarajan, +91 91 98216 89525 firstname.lastname@example.org
About Circulate Capital
Circulate Capital is an investment management firm dedicated to incubating and financing companies that prevent ocean plastic. We focus on the prevention of mismanaged plastic waste in countries located in South Asia and Southeast Asia, regions that contribute disproportionately to ocean plastic pollution primarily because they often lack investment in critical waste and recycling infrastructure to manage the problem. We were created in collaboration with Ocean Conservancy, and our founding investors include PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company LLC.
Circulate Capital invests in and supports start-ups, organizations and SMEs across the entire plastic value chain, from innovations in material to advanced recycling technologies. It seeks to mobilize catalytic capital into the waste management and recycling industry to prove that investing in this sector is scalable in South and Southeast Asia and can generate competitive returns, while moving to solve the ocean plastic crisis.
Our Portfolio's Impact in India
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