Profit vs Planet: Industry leaders confabulate on the economics of circularity

Moderated by Krunal Goda, founder of Anant Tattva, the session brought together recyclers, chemical experts, and material suppliers to address why the industry continues to struggle with the “profit vs planet” divide. Experts highlighted the friction between economic sustainability and environmental obligations while calling for standardised material design to boost recycling rates.

Amit Khurana, CEO of TechNova Imaging Systems, opened the dialogue by challenging the industry's genuine commitment to the environment. He argued that while the mantra of “doing well and doing good” exists, the current focus remains toward economic sustainability and profit rather than the planet and people. Khurana emphasised that true sustainability requires looking at every component of the value chain to ensure that whatever is produced eventually returns to the system in some form.

This sentiment is echoed by Seshadri R, head of applied engineering at Henkel, who observed that many brand owners view sustainability as a secondary obligation rather than a core mission. He noted that while companies are testing new materials, implementation is often stalled by cost pressures and the high expense associated with EPR. Seshadri suggested that brand owners often push the burden of sustainability onto converters, who must then navigate the technical complexities of the transition.

The shift from multi-layer to mono-material packaging remains a central goal for recyclability, but it introduces significant operational challenges. Ankit Jain, director of Ribotl Solutions, explained that smaller converters are often overwhelmed by brand mandates for recycled content. He noted that recycled materials rarely match the quality of virgin polymers, complicating the manufacturing process.

Dr Sameer Chikkali, chief scientist and professor at NCL, pointed out that while India has achieved an 85% recycling rate for PET, other materials like PE-PE lag significantly behind. He suggested that AI-based segregation systems are becoming essential to replicate the success of PET recycling across different polymer types. 

However, Jain added that recyclers face a unique hurdle in colour-segregation; since every brand uses its own unique colour coding and specific shades, manual or mechanical sorting becomes increasingly difficult and expensive.

Bhadresh Dodhia, director of plastic recycling and finance at Dodhia Group, asserted that policy alone is insufficient to drive change. He argued that sustainability initiatives must be backed by economic incentives to be effective.

Dodhia also warns of an impending “inflationary crisis” within the packaging supply chain. He noted that the cost of critical components, such as dies, has already doubled.

Furthermore, he cautions that machine utilisation will soon be challenged by a lack of sufficient raw materials, as the demand for high-quality recycled polymers begins to outstrip the current collection and processing capacity.

To overcome these barriers, the panel advocates for a shift toward industry-wide standardisation. Seshadri R proposes that brands should move away from individual material specifications and instead collectively design standard material compositions for common products, such as atta (flour) packaging. He argued that such a “design for recyclability” forum-led approach would ensure materials return to the production system rather than ending up in landfills.