Race Eco Chain Ltd. (BSE: 537785, NSE: RACE), one of India’s fastest growing companies engaged in plastic waste management, has announced that it, and Ganesha Ecosphere Limited, the largest PET recycler in India, will form a joint venture named Ganesha Recycling Chain Private Limited. The Board has provided its in-principle approval to enter into a Joint Venture with Ganesha Ecosphere Ltd. The Joint Venture agreement is yet to be finalized and executed.

This collaboration aims to launch numerous washing lines across India to transform PET bottles into reusable flakes. The joint venture is expected to make substantial advances in sustainability, with proposed shareholding such that Race Eco Chain will acquire up to a 51% equity stake and Ganesha Ecosphere securing up to a 49% stake. Post incorporation of target entity, it will become Subsidiary of the RACE Eco Chain Limited. Over the coming years, the venture plans to establish several washing lines across India that will be utilized for production of quality PET flakes, thereby significantly reducing plastic waste and fostering a circular economy.

This joint venture is poised to address the escalating demand for recycled PET (rPET) in India, driven by Environmental, Social, and Governance (ESG) mandates and regulatory requirements. The Indian government has stipulated that packaging must contain 30% recycled plastic by 2025-2026, increasing to 60% by 2028- 2029. This initiative underscores the importance of recycled materials and projects that the demand for rPET in India will surpass 1 million tons by 2031.

By creating employment opportunities within the recycling industry, this initiative advances both environmental protection and economic growth. This investment in the JV is in response to mounting demand of ESG and regulatory demands (EPR Rules). The joint venture represents an important step forward toward a sustainable future.

Talking about this development, the management of RACE Eco Chain Ltd. further added, “This joint venture marks a significant forward integration of RACE business, positioning RACE for higher-margin opportunities. We are confident that leveraging Ganesha Ecosphere's extensive resources and industry expertise will enable us to achieve both our economic and environmental objectives, driving sustainable growth for the future.”

Dedicated to curbing the carbon footprint caused by plastic waste, RACE (Recycling and Circular Economy) has emerged as a pioneering force in the environmental sector. Using leading technologies, it manages the entire lifecycle of plastic waste, enabling traceability from collection to disposal. As a proud member of the responsible practices movement, RACE promotes sustainability while providing end-toend traceability. Recently RACE has collaborated with multiple brands, corporates and Recyclers for Organizing the un-organised waste supplychain. Earlier, Race and Zepto (Kiranakart technologies) cemented a pivotal partnership for post-consumer waste collection from households.

Through this collaboration, ZEPTO's dedicated delivery agents are tasked with directly collecting PET bottles from households, achieving comprehensive traceability through efficient procurement of post-consumer waste PET bottles. Central to RACE's ethos is a staunch commitment to advancing its technological prowess. The company envisions elevating the efficiency of the existing value chain, recognizing technology as the cornerstone solution to realize this vision. RACE is committed to Organizing the waste supply chain with its vast network, use of new technologies and digitization of the supply chain with RACE App, leading to strong ESG Focus. The securities of the company are listed on both BSE & NSE.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)