British International Investment Commits INR 205 Crore To Magpet Polymers To Accelerate Circular Economy In India

KOLKATA, India, Oct. 24, 2024 /PRNewswire/ — Magpet Polymers Pvt. Ltd. (Magpet), India’s first PET circular enterprise and a pioneer in sustainable plastic waste management, today, announced a strategic investment of INR 205 crore (USD 24 million) from British International Investment (BII), the UK Government’s development finance Institution and an impact investor.

Memorandum of Understanding was signed in this regard by both the organisations. The event was attended by Dr Rajesh Kumar, Principal Secretary, Department of Environment, Government of West Bengal & Member Secretary, West Bengal Pollution Control Board, Government of West Bengal; Dr Andrew Fleming, Deputy High Commissioner, British Deputy High Commission; Mr. Nikhil Chulani, Investment Director, British International Investment, United Kingdom; Mr. Arun Korati, Director, Interim Head of India, British International Investment, United Kingdom; Mr. Devendra Surana, Founder & Managing Director, Magpet Polymers Pvt. Ltd.; Mr. Indroneel Goho, President & CEO, Magpet Polymers Pvt. Ltd. and Ms. Shruti Swaika, Lawyer, Fox & Mandal.

This landmark investment will enable Magpet to expand its operations and fast-track the development of India’s largest and first integrated single line bottle-to-bottle food-grade recycling plant at Vidyasagar Industrial Park, Kharagpur, West Bengal.

The facility will cover the entire PET-bottle recycling value chain from receiving used bottles to processing, which includes washing and turning them into flakes or granules, and to finally turning the granules back into bottles, thus presenting a true circular economy.

The plant, with an annual capacity of 45,000 metric tonnes per annum, will produce high-quality food-grade recycled PET (rPET) pellets, addressing the growing demand for sustainable plastic products while significantly reducing reliance on virgin plastics. The facility will use cutting-edge European technology from Herbold, Coperion, and Polymetrix, which is being introduced to India for the first time – placing Magpet at the forefront of India’s sustainable recycling sector.

This circular economic solution for plastics is particularly important for West Bengal where local recycling capacity is insufficient to tackle the amount of plastic waste generated. It will potentially reduce emissions of 51,000 metric tonnes CO2e per annum via reduced virgin plastic use in end products. As well as emissions reductions, the expansion is expected to create approximately 300+ jobs at Magpet’s upcoming facility in West Bengal. This project will also have a positive impact on the livelihood of about 10,000+ waste pickers in the region. This also prepares the state and the region’s readiness to adhere to the statutes of the Plastic Waste Management Act which kicks in from April, 2025.

“As the United Kingdom and India deepen our ties in trade, technology, and climate action, today’s partnership is a prime example of the transformative potential of our collaboration. Together, this lays down the foundation for a future where economic development is sustainable, inclusive, and beneficial for all.  British International Investment’s commitment to Magpet Polymers will not only set a great example to transform plastic waste management in India but also set a global benchmark for sustainable livelihood creation and climate innovation,” said Dr Andrew Fleming, British Deputy High Commissioner to the East and Northeast India.

“We are pleased to announce our association with BII, a distinguished impact investor with a strong track record of supporting businesses that drive meaningful environmental and social outcomes. This investment will allow us to scale our sustainable practices and enable wider adoption of recycled PET in India’s packaging industry, contributing to the reduction of plastic waste and carbon emissions,” said Mr. Devendra Surana, Managing Director, Magpet.

“This investment from BII is a major milestone for Magpet and affirms our dedication to transforming plastic waste management in India. The support from BII will not only help us expand our recycling capabilities but also strengthen community-focused initiatives like the Smart ReBin project, which promotes responsible PET disposal and generates livelihood opportunities for waste pickers,” said Mr. Indroneel Goho, President & CEO, Magpet.

“Our investment strategy in India is focused on providing finance to support sustainable and inclusive opportunities. Magpet is an example of a business that is proactively investing in developing a circular business model to tackle the urgent issue of plastic pollution. We look forward to partnering with them on this journey,” said Mr. Nikhil Chulani, Investment Director, British International Investment.

Magpet has introduced food grade rPET resin under the brand name Metapet. With Metapet, the company aims to bring change and ensure cleaner habitat and healthier living and make the economy self – sufficient.

Magpet’s other ongoing initiatives, including the #EcoRevive campaign through the SmartReBin installations across residential societies, hospitals, and commercial establishments, will encourage PET bottle collection and recycling, contributing to the company’s broader vision of promoting plastic circularity and fostering social inclusivity through environmentally responsible practices.

With this partnership, Magpet is set to become India’s first fully integrated PET circular enterprise, generating long-term value for businesses, communities, and the environment.

About Magpet Polymers Pvt. Ltd. (Magpet):

Magpet is one of India’s leading manufacturers of high-quality PET preforms, 20Ltr Preforms & Jars, Bottles & Caps, and is dedicated to creating sustainable plastic solutions through innovation and responsible recycling practices. The company is building India’s first integrated bottle-to-bottle food-grade recycling plant in Kharagpur, with a capacity of 45,000 MTPA, utilizing the latest European technology introduced to India for the first time. Magpet is committed to promoting a circular economy for plastics and driving positive social impact through community engagement and waste management initiatives. For more information, visit: www.magnumgroup.in | watch here. Follow Magpet on LinkedIn 

About British International Investment (BII):

British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.

Photo: https://mma.prnewswire.com/media/2539448/Magpet_MoU_Signing.jpg

 

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