- Recycling capacity planned across mechanical, chemical processes
- Recycled PP, HDPE, ABS remain cost competitive against virgin polymer
Circulate Capital plans to invest $9.5 million in Coimbatore-based plastics recycler JC Global, supporting its expansion into an integrated recycling network. The investment comes as India’s recycled polymer market gains traction, with converters increasingly considering recycled material as virgin polymer prices rise.
Capacity expansion
JC Global currently has 24,000 t/year of mechanical recycling capacity and 3,000 t/year of chemical recycling capacity, according to company disclosures. Planned additions are expected to take mechanical recycling capacity to 36,000 t/year and chemical recycling capacity to 12,600 t/year, taking the combined capacity to 48,600 t/year.
The company is also targeting an eventual recycling capacity of nearly 100,000 t/year through a multi-plant network, including new facilities in Tamil Nadu. Chemical recycling is planned to recover residual plastics that cannot be processed through mechanical recycling.
Recycled polymer prices remain competitive
PolyMint data shows recycled polymers are currently priced below corresponding virgin grades, providing converters with an economic incentive to increase recycled-material usage where technical specifications permit.
The recycled discount currently stands at around 15-20% for PP, 8-10% for HDPE and 25-27% for ABS.
PolyMint market feedback indicates that converters remain cautious in domestic and import markets, with purchases largely limited to immediate requirements. Higher virgin polymer costs are proving difficult to pass through to downstream customers.
At the same time, demand for good-quality recycled material has increased as buyers seek lower-cost alternatives. The current price differential is therefore supporting substitution where recycled grades meet application and quality requirements.
Market implications
The investment comes as India’s organised plastic recycling sector expands under the extended producer responsibility framework. Government data showed 2,986 registered plastic-waste recyclers as of 5 March 2026, while nearly 197 lakh tonnes of plastic waste had been recycled under the EPR framework.
For converters, the combination of rising virgin polymer costs and lower-priced recycled material could support greater recycled-content usage. For recyclers, the expansion of integrated mechanical and chemical processing could improve access to feedstock and enable production of higher-value recycled polymers.
Outlook
Recycled polymer demand is likely to remain supported through the remainder of 2026 if virgin polymer prices remain elevated and the current price differential persists. Capacity commissioning, feedstock availability and customer qualification will determine how quickly new recycling capacity translates into additional market supply.
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