Mumbai, May 7, 2026: Ester Industries Limited and Canada-based Loop Industries joint venture, Ester Loop Infinite Technologies (ELITe), has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to establish India’s first large-scale chemical polyester recycling plant in the PCPIR Dahej region of Bharuch district.
The project, which entails an investment of ₹1,600 crore, was formalized during the Vibrant Gujarat regional conferences held at Auro University under the Chemicals, Petrochemicals & GIDC Large Projects category.
The proposed greenfield facility is expected to commence commercial operations by 2028 and generate around 500 direct jobs. Designed as a major step toward building a circular polyester economy in India, the plant will recycle post-consumer and post-industrial polyester waste into virgin-quality PET materials suitable for textile and packaging applications.
The facility will deploy Loop Industries’ Infinite Loop technology and is designed to produce approximately 70,000 tonnes of recycled dimethyl terephthalate (rDMT), 23,000 tonnes of recycled monoethylene glycol (rMEG), and 70,000 tonnes of recycled PET resin annually. The project also includes provisions for future capacity expansion.
In a major commercial development, Nike has been confirmed as the anchor customer under a multi-year offtake agreement for Twist, a sustainable polyester material aimed at helping global apparel and textile brands meet circularity and sustainability goals.
The engineering groundwork for the project is already underway. Front-End Engineering Design (FEED) has been completed by Tata Consulting Engineers, while detailed engineering responsibilities have been awarded to Toyo Engineering India Private Limited, a globally recognized EPC company.
The Government of Gujarat, through the Gujarat Industrial Development Corporation (GIDC), has assured support for the project by facilitating approvals, registrations and clearances in a time-bound manner.
According to project estimates, the facility is expected to reduce greenhouse gas emissions by nearly 81%, resulting in annual savings of up to 4,18,600 tonnes of CO₂ compared to conventional virgin PET production methods.
Commenting on the development, Ayush Vardhan Singhania said, “This MoU with the Government of Gujarat is a defining milestone for ELITe and for India’s place in the global circular economy. With land secured, engineering underway and Nike confirmed as our anchor customer, the Bharuch facility stands on an exceptionally strong foundation.”
Vaibhav Jha added that India, despite being one of the world’s largest polyester producers and consumers, currently recycles very little of its polyester waste. He noted that the Bharuch facility aims to transform waste that typically ends up in landfills into high-value circular raw material sought after by global brands.
