USD 165 million business expansion: This packaging company enters into a JV partnership with Loop Industries to build sustainable polymer plant in India

The stocks is up by 63 per cent from its 52-week low of Rs 80.21 per share.

Ester Industries Ltd and Loop Industries INC, a clean technology company, have joined forces to construct an Infinite Loop manufacturing facility in India. This facility will produce recycled materials like rDMT (recycled dimethyl terephthalate) and rMEG (recycled mono-ethylene glycol) alongside speciality polymers, all with a significantly reduced carbon footprint.

The partnership leverages the strengths of both companies. Ester Industries brings nearly 40 years of experience in polymer production and local expertise to the table. Loop Industries contributes its innovative Infinite Loop technology, established global customer base, and experience in manufacturing recycled PET plastics and polyester fibers.

This project targets a significant market opportunity. The global market for DMT and MEG speciality chemicals is estimated at USD 28 billion and is expected to grow steadily. There's a current shortage of DMT globally, and sustainable options for both DMT and MEG are limited and expensive. The Infinite Loop facility aims to address this gap by producing 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually. These products can be used as a sustainable alternative by chemical companies to meet their environmental goals.

The Indian facility is expected to be operational by early 2027. It will benefit from India's abundant textile waste supply and leverage Loop's existing technology to achieve a faster startup time. Construction is estimated to cost around USD 165 million and is slated for completion by the end of 2026. This project is expected to be profitable without requiring a significant sustainability premium from its customers.

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Established in 1985, Ester Industries Limited is a leading Indian manufacturer of Polyester Films and Specialty Polymers with a nearly 40-year history of innovation. Their cutting-edge facilities boast a combined capacity of 67,000 TPA of Polyester Resin, 110,000 TPA of Polyester Film, and 30,000 TPA of Specialty Polymers, with the latter primarily targeted for US and overseas markets. Notably, Ester prioritizes sustainability and circularity, aligning with Loop Industries' Infinite Loop technology for recycling polyester waste into valuable products for various applications across industries.

The company has a market cap of over Rs 1,000 crore. Today, the shares of Ester Industries Ltd gained 9 per cent to an intraday high of Rs 130.45 per share. The stocks is up by 63 per cent from its 52-week low of Rs 80.21 per share.

Disclaimer: The article is for informational purposes only and not investment advice.