The Strategic R-PET Partnership Between LNJ GreenPET and Sumitomo: A Catalyst for Circular Economy Growth in India

India’s recycled polyethylene terephthalate (r-PET) market is emerging as a cornerstone of the country’s transition to a circular economy. With government mandates, corporate sustainability commitments, and technological advancements converging, the sector is poised for exponential growth. At the heart of this transformation is the strategic partnership between LNJ GreenPET and Japan’s Sumitomo Corporation, a collaboration that could redefine India’s r-PET value chain and attract global investors.

Market Dynamics: A Booming R-PET Sector

The India r-PET market is projected to grow at a compound annual growth rate (CAGR) of 7.35% from 2024 to 2030, expanding from USD 10.67 billion in 2023 to USD 17.53 billion by 2030 [4]. This growth is driven by stringent regulations, such as the Plastic Waste Management Rules and the Extended Producer Responsibility (EPR) scheme, which mandate 30% recycled plastic content in packaging by 2026 [2]. Additionally, global giants like Coca-Cola and Nestlé have pledged to use 100% rPET bottles, accelerating demand for sustainable packaging solutions [4].

The market’s expansion is further supported by India’s high PET recycling rate—over 90%—and innovations like chemical depolymerization and bottle-to-bottle recycling [4]. By 2031, rPET usage is expected to surpass one million tons annually, fueled by both domestic and international demand [2].

The LNJ GreenPET-Sumitomo Collaboration: A Strategic Fit

LNJ GreenPET, a subsidiary of the Bhilwara Group, has partnered with Sumitomo Corporation to establish a robust r-PET value chain in India. This collaboration spans commercial development, raw material procurement, and market expansion, with Sumitomo providing global expertise and LNJ GreenPET leveraging its local infrastructure [1].

A key component of the partnership is the development of LNJ GreenPET’s state-of-the-art rPET plant in Rajasthan, which will recycle 20 million PET bottles daily, producing 100 kilotons of food-grade rPET resin annually [3]. The project, backed by a ₹750 crore investment from Bhilwara Energy Limited, is set to launch in September 2026 [3]. During the pre-production phase, Sumitomo will source r-PET flakes from Southeast Asia and other regions to ensure supply continuity [1].

The partnership also includes a joint market study to assess customer segmentation, regulatory feasibility, and supply chain benchmarks, ensuring alignment with India’s sustainability goals and global market demands [1]. By 2026, this initiative aims to create a scalable model for rPET production, positioning India as a leader in sustainable packaging.

Competitive Landscape and Investment Potential

India’s r-PET market is highly competitive, with key players like Ganesha Ecosphere, Green-O-Tech India, and Reliance Industries expanding capacities to meet surging demand [1]. Ganesha Ecosphere, for instance, has ramped up rPET output to 42,000 tons per annum, targeting 25% of India’s PET waste by 2026 [1]. Meanwhile, Reliance Industries and IVL Dhunseri are leveraging advanced recycling technologies to dominate the PET bottle recycling sector [5].

Despite this competition, the LNJ GreenPET-Sumitomo partnership stands out due to its strategic alignment with global sustainability trends and its focus on food-grade rPET, a niche with high margins. The collaboration’s emphasis on bottle-to-bottle recycling and adherence to EPR mandates also positions it to capture government and corporate contracts.

For investors, the partnership offers exposure to a market with a CAGR of 9.88% (2025–2032) for rPET flakes [6], driven by FMCG companies targeting 50% rPET in packaging by 2030 [1]. Additionally, the Indian PET and PBT resins market is projected to grow at 4.88% CAGR from 2025 to 2033, reaching USD 306.65 million by 2033 [2], further diversifying revenue streams.

Risks and Mitigation

While the market outlook is optimistic, challenges such as supply chain volatility, regulatory changes, and technological bottlenecks persist. For instance, the interim reliance on imported r-PET flakes could expose the project to geopolitical risks. However, the partnership’s focus on domestic recycling infrastructure and Sumitomo’s global sourcing capabilities mitigate these concerns [1].

Conclusion: A Win-Win for Investors and the Planet

The LNJ GreenPET-Sumitomo collaboration exemplifies how strategic partnerships can accelerate India’s circular economy while delivering strong returns. With a growing market, supportive policies, and innovative technologies, the r-PET sector offers a compelling investment opportunity. As global brands and governments intensify their sustainability efforts, India’s r-PET value chain—anchored by projects like this—will play a pivotal role in shaping a greener future.

Source:
[1] LNJ GreenPET and Sumitomo Corporation Sign MoU for Strategic Collaboration in r-PET Sector [https://www.prnewswire.com/in/news-releases/lnj-greenpet-and-sumitomo-corporation-sign-mou-for-strategic-collaboration-in-r-pet-sector-302548829.html]
[2] India PET and PBT Resins Market Size, Share Report, 2033 [https://www.imarcgroup.com/india-pet-pbt-resins-market]
[3] India Paraxylene Market Size, Share, Growth Report, 2033 [https://www.imarcgroup.com/india-paraxylene-market]
[4] India Recycled PET (r-PET) Bottles Market: Industry Analysis [https://www.maximizemarketresearch.com/market-report/india-recycled-pet-r-pet-bottles-market/40689/]
[5] India Plastic Recycling Market Size, Trends and Share 2030F [https://www.techsciresearch.com/report/india-plastic-recycling-market/9346.html]
[6] Key Trends Driving Growth in the rPET Flakes Market [https://www.linkedin.com/pulse/key-trends-driving-growth-rpet-flakes-market-107-cagr-from-2025-xqm6c]