The plastic waste management firm Race Eco Chain announced that it would form a joint venture with Ganesha Ecosphere to set up washing plants to produce pet flakes. Ganesha Ecosphere Ltd is one of the major PET recycler in India.

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The board has provided its in-principle approval to enter into a joint venture with PET recycler firm Ganesha Ecosphere, Ghaziabad-based Race Eco Chain said in a stock exchange filing.

The joint venture agreement is yet to be finalised and executed, it added.

"This collaboration aims to launch numerous washing lines across India to transform PET bottles into reusable flakes. The joint venture is expected to make substantial advances in sustainability, with proposed shareholding such that Race Eco Chain will acquire up to a 51% equity stake and Ganesha Ecosphere will secure up to a 49% stake. Post incorporation of the target entity, it will become a subsidiary of the RACE Eco Chain Limited. Over the coming years, the venture plans to establish several washing lines across India that will be utilized for the production of quality PET flakes, thereby significantly reducing plastic waste and fostering a circular economy," the company said.

The government has stipulated that packaging must contain 30 per cent recycled plastic by 2025-2026 and further increase it to 60 per cent by 2028-2029, it said.

This joint venture (Ganesha Recycling Chain Pvt Ltd) is aimed at addressing the escalating demand for recycled PET (rPET) in India, driven by Environmental, Social, and Governance (ESG) mandates and regulatory requirements, Race Eco Chain added.

By creating employment opportunities within the recycling industry, this initiative advances both environmental protection and economic growth, it said.

On Tuesday, it announced that Race Eco Chain Ltd and Ganesha Ecosphere Ltd had reached an agreement to establish a 51:49 joint venture for setting up the washing plants for producing pet flakes.

The JV plans to establish several washing lines across India that will be utilised for production of quality PET flakes, thereby significantly reducing plastic waste and fostering a circular economy, the Ghaziabad-based firm said.

Further, the company said that recently it collaborated with multiple brands, corporates and recyclers for organising the unorganised waste supply chain.

Shares of Race Eco Chain settled 1.47 per cent higher at Rs 441.80 apiece on BSE.