Circulate Capital invests in Indian plastic recycler Deluxe

The Hindu Business Line

Author: Yatti Soni


Singapore-based investment firm is backed by PepsiCo, Procter & Gamble and other large corporations


Singapore-based investment management firm Circulate Capital has invested in Indian plastic recycling company Deluxe through its $112-million Circulate Capital Ocean Fund (CCOF I), which was created in partnership with global corporations like PepsiCo, Procter & Gamble, Chanel, Unilever and The Coca-Cola Company, among others.

While the firm did not disclose the investment amount, Rob Kaplan, Founder and CEO of Circulate Capital, told BusinessLine that the average ticket size of their investments is $2-10 million. Deluxe recycles multilayer plastics (MLP) like sachets and used beverage cartons into new, valuable products such as pallets and rickshaw seats.

Deluxe says it has developed a scalable ecosystem for MLP collection by working with a network of aggregators and small material recovery facilities (MRF). The company uses proprietary in-house technology to manufacture a range of heavy and rigid products. In 2020, the company said it recycled 7,100 tonnes of MLP. Deluxe will use the funding to add three new facilities in western and southern India, which will increase its capacity three-fold.

Jignesh Shah, Co-founder of Deluxe, said, “Our ultimate mission is to create value from waste, diverting it from incineration and landfill. We are proud to partner with Circulate Capital to scale our operations and our impact. At Deluxe, we see the potential to transform India’s MLP waste into a valuable mainstream raw material, incentivising its collection and replacing the need to use virgin plastics.”


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