Hyderabad-based Srichakra Polyplast has lined up ₹425 crore in capital expenditure to expand its food-grade recycled PET (rPET) capacity from around 90,000 tonnes to over 113,000 tonnes by 2026, as it targets ₹1,000 crore in revenue in FY27-28, top company officials told businessline.
The company, which reported revenue of ₹227 crore in FY25, expects to scale to around ₹400 crore in FY26, with the planned investment directly supporting this growth through capacity expansion and higher-spec, food-grade recycling capabilities, the company officials further indicated.
processing capacity
Srichakra is adding over 23,000 tonnes of processing capacity, taking its total from about 90,000 tonnes currently to more than 113,000 tonnes by 2026. The expansion is being executed through a distributed model rather than a single large plant, with the upcoming Krishnagiri facility in Tamil Nadu anchoring the bulk of new capacity, alongside scaling up operations through its Gujarat joint venture. The company’s existing base in Telangana continues to serve as its core processing hub, with plans to extend the network into eastern and northern markets over time.
The approach brings processing closer to both feedstock sources and end markets, helping improve input quality, reduce logistics costs, and strengthen traceability. The company also plans to expand into eastern and northern markets over time, building a pan-India recycling platformAmong the early players to commence commercial bottle-to-bottle recycling in India, Srichakra operates EFSA- and US FDA-approved processes and supplies to global brands across beverage and packaging segments.
With demand visibility improving, the company is looking to convert this into long-term contracts, leveraging its certification stack and early-mover advantage. It is also building export momentum, with shipments of around $1.5 million a month, positioning itself within the global supply chain for certified recycled polymers.
India’s Extended Producer Responsibility (EPR) framework is central to this shift. From April 2026, companies using PET bottles will be required to incorporate 40 per cent recycled content, up from 30 per cent earlier, tightening compliance requirements across the value chain.
At the same time, the market is running into a structural supply constraint. Industry estimates indicate that food-grade rPET availability stands at around 3.54 lakh tonnes, significantly lower than the 6.84 lakh tonnes required to meet FY27 compliance targets.
However, the constraint is not at the level of collection but at conversion. “The gap is not at the kerbside. It is at the converter,” said Ravindra P V, co-founder and managing director of Srichakra Polyplast, pointing to structural limits in turning collected plastic into certified, food-grade material.
While India collects a large share of rigid plastic waste through an extensive informal ecosystem, much of this material cannot be converted into certified, food-grade rPET due to contamination, poor segregation, and lack of traceability. As a result, the industry is shifting from a volume-based model to one centred on certification, consistency, and traceable supply chains.
GST gaps distort cost structures
For Srichakra, the challenge is not just improving feedstock quality but also navigating structural distortions in the supply chain. Gaps in GST compliance among sections of feedstock suppliers create uneven cost structures, leaving formal, compliant recyclers at a disadvantage despite operating to higher standards.
“The biggest distortion in our industry today is not technology, capacity, or even feedstock availability. It is the GST leakage at the supplier end of the chain,” Ravindra said. “Compliant recyclers are competing against cost structures built on regulatory arbitrage.”
To address this, the company is investing in pre-segregation systems, supplier networks, and traceability infrastructure to improve input quality and ensure compliance with global standards.
competitive advantage
Srichakra’s expansion comes as the opportunity draws in larger players. Domestic recyclers such as Banyan Nation and Ganesha Ecosphere are scaling up capacity, while global major Indorama Ventures has partnered with Varun Beverages to set up a 100,000-tonne rPET facility in India, raising the scale benchmark.As the market evolves, competitive advantage is shifting beyond installed capacity toward control of feedstock, certification capabilities, and end-to-end traceability—areas where Srichakra is building its positioning.
Expansion on steriods
The gap between Srichakra’s current revenue and its ₹1,000 crore target implies a near 2.5x expansion in two years.While regulatory mandates provide strong demand visibility, the pace of scale-up will depend on how quickly the company can secure high-quality feedstock, expand certified capacity, and build traceable supply chains.
“The future of recycling in India will be defined not by how much plastic is collected, but by how much of it can be certified, traced, and reintegrated into high-value applications,” Ravindra said. “In 24 months, this industry will look bifurcated, with commodity recyclers on one side and compliance-grade players on the other.”