Image default
Business Projects

Circulate Capital invests in plastic recycling in Asia

“Our goal is to scale our capacity to recycle locally-sourced plastic, to grow our customer base by partnering with international and local manufacturers (including Circulate Capital’s investors) and to diversify our products to increase our impact and prevent more plastic from ending up in the environment.”

Circulate Capital has invested a total of $6 million in two plastic recycling companies located in India and Indonesia.

The company’s Circulate Capital Ocean Fund (CCOF) investment fund is dedicated to the ocean plastic crisis in South and Southeast Asia.

The $106 million CCOF is backed by PepsiCo, its first investor, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Co., Chevron Phillips Chemical and Chanel, which commit capital and technical and procurement expertise to help the portfolio scale and drive maximum impact.

CCOF’s first investments are in companies that specialise in building markets to collect and recycle local plastics. Lucro Plastecycle Private, Mumbai, India, is a manufacturer that specialises in recycling difficult-to-manage flexible plastic for its own production and for sale to other facilities across the country. PT Tridi Oasis Group in Jakarta, Indonesia, is a female-led company specialising in recycling PET bottles into rPET flakes, which are used to manufacture packaging and textiles.

These investments by CCOF will help to build markets and circular plastic value chains that prevent plastic leakage and support local communities, Circulate Capital (@CirculateCapital) said in a statement.

In addition, Circulate Capital is supporting these companies as they manage the direct consequences of the COVID-19 outbreak on their businesses while also providing access to short-term lines of credit when possible. The loan made to Tridi Oasis is 50% guaranteed by USAID, further derisking the investment and demonstrates blended finance in action, the investment management company said.

“If the current health and economic crisis has taught us anything, it’s that we need to future proof our local supply chains and economies,” said Rob Kaplan, CEO, Circulate Capital.

Kaplan added: “The resilience of critical infrastructure like waste and recycling goes hand-in-hand with protecting the health and livelihoods of our communities. By investing in small and medium-sized businesses that reduce plastic pollution and advance the circular economy, we can build sustainable businesses that can endure through a crisis.

“India and Indonesia have a great opportunity to reduce the amount of plastic waste that leaks into our oceans by investing in their highly fragmented waste and recycling industries.”

Ujwal Desai, managing director, Lucro, said: “We focus on films and flexible plastic that many others avoid because we believe there is inherent, untapped value that can be realised by turning plastic waste into valuable products. With Circulate Capital’s support we will further grow and scale our business, with new collection centres planned to increase post-consumer sourcing and better support the informal waste sector community, as well as expand the range of our recycling processes to achieve our vision of becoming a global leader in recycled products.

“Our trademark Plast-E-Cycle process sets new standards for the industry as we buy back and recycle flexible plastic from manufacturers, retailers, distributors, scrap aggregators and waste pickers, thereby closing the loop in plastic usage. The opportunity in this space is significant; with over 200 customers today, our business has grown 100 times in eight years.”

Dian Kurniawati, CEO, Tridi Oasis, said: “More than four years ago, we saw an opportunity to turn the plastic waste on our streets and beaches into valuable products. We are excited to work with Circulate Capital to turn this vision into a reality. Our goal is to scale our capacity to recycle locally sourced plastic, to grow our customer base by partnering with international and local manufacturers (including Circulate Capital’s investors) and to diversify our products to increase our impact and prevent more plastic from ending up in the environment. We can create a meaningful contribution by providing value along the waste management supply chain through local jobs and increasing the awareness of the ocean plastics problem among our communities.”

Lucro and Tridi Oasis also will receive support from Circulate Capital’s network of partners to help them scale and connect with the supply chains of global manufacturers.


If you were interested in this circular economy story, you may be interested in the ones below.

Read:  European Commission takes aim at ‘greenwashing’ in new circular economy action plan

Read: European Commission unveils proposal for EU’s ‘first-ever’ climate law

Read: European Green Deal: Bioplastics to play a crucial role in making the deal become reality.

Read: Bioeconomy policy monitor

Read: Bioplastics to ‘play key role’ in implementation of circular economy and EU environmental directives.

Read: USDA proposes new GM rule.

Read: USDA amends its guidelines for designating bio-based products.

Read: European Commission urges industry to do more to boost recycled plastics market.

Related posts

5 Minutes With… Rupin Rughani from Leafoware.

Liz Gyekye

USDA reserves $100 Million+ in loan guarantee funding for Biosynthetic Technologies.

Bio-Based World News Staff

Have a very merry Bio-Based Christmas and a Sustainable New Year!

Luke Upton

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More