Sustainable waste management initiative launched for FMCG
By Retail4Growth Team | September 11, 2024
The joint Circular Economy initiative between Sharrp Ventures, Re Sustainability, and Marico Innovation Foundation (MIF), a subsidiary of Marico Limited, aims to Recycle 32,000 Tonnes of Plastic Waste and Reduce 15,000 Tonnes of CO2 annually.
Sustainable waste management is a critical need in the eco-system across diverse industries. For consumer facing brands with retail presence, the need for sustainable practices cuts across their manufacturing, packaging, distribution and brand promotion practices. As part of a significant 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, have announced their collaboration to launch the Plastics Circularity Initiative in Hyderabad, Telangana, and Raipur, Chhattisgarh.
As per the company statement, 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,” it says.
Hyderabad and Raipur have been strategically chosen for this initiative due to their unique demographics and waste management challenges. 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, informs the statement.
This landmark circularity project will commence with the setup of infrastructure now in both cities, with facilities expected to be operational by early FY26. Setting up this infrastructure involves building advanced recycling facilities equipped to handle large volumes of waste efficiently. From 2026 onwards, high-quality recycled polymer is likely to be available for purchase by the FMCG and other industries, providing a new revenue stream for the project. This infrastructure setup aims to achieve nearly 100% diversion of dry waste from landfills through comprehensive recycling processes.
The initiative is a collaborative effort between Sharrp Ventures, Re Sustainability, and Marico Innovation Foundation (MIF), a subsidiary of Marico Limited. 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.
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 statement adds that 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.
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.”
Masood Mallick, MD and CEO of Re Sustainability Limited, added, “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.