Srichakra to invest Rs 425 crore to expand food-grade rPET capacity

Hyderabad-based Srichakra Polyplast has announced plans to invest Rs 425 crore to expand its food-grade recycled PET (rPET) capacity, positioning itself to capitalise on tightening regulatory mandates and rising demand for certified recycled content in packaging.

The company will increase its processing capacity from around 90,000 tonnes to more than 113,000 tonnes by 2026. Backed by this investment, Srichakra is targeting revenues of Rs 1,000 crore in FY27, according to senior company officials. Revenue is expected to reach Rs 450–500 crore in FY26 as the new capacity comes on stream.

The expansion will follow a distributed manufacturing model rather than relying on a single large facility. A new plant in Krishnagiri will anchor the bulk of the new capacity, while operations will also be scaled through the company’s Gujarat joint venture. Its existing base in Telangana will continue to serve as the core processing hub.

Srichakra, one of India’s early entrants in commercial bottle-to-bottle recycling, operates EFSA- and US FDA-approved processes and supplies certified food-grade recycled polymers to global beverage and packaging brands. The company plans to expand further into eastern and northern India to build a nationwide recycling platform.

The investment comes as India’s Extended Producer Responsibility (EPR) rules require PET bottle users to incorporate 40% recycled content from April 2026, up from 30% previously.

However, the industry faces a significant supply shortfall. Estimates suggest that food-grade rPET availability stands at about 3.54 lakh tonnes, well below the 6.84 lakh tonnes needed to meet FY27 compliance targets.

“The gap is not at the kerbside. It is at the converter,” said Ravindra PV, highlighting the challenge of converting collected plastic into certified food-grade material.