Page 28 - Plastics News May 2024

ENVIRONMENT NEWS

Nestle, Britannia, ITC: Winners, losers from plastic waste management norms
he New plastic waste management (PWM) regulations are estimated to have a major impact on consumer com-
panies including Britannia, Colgate, and Nestle. The regulations are planned to be phased in starting in fiscal
year 2024–25 (FY25). On the other hand, Godrej Consumer Products Limited (GCPL), ITC, Jyothy Labs, and
Varun Beverages Limited (VBL) are expected to be less affected by these limitations. Kotak Institutional Equi-
ties attributes this varying impact to variables like the percentage of flexible plastics that are difficult to recycle
and the amount of multi-layered plastic (MLP) that companies use. It also come from the need for higher-grade recycled
plastic, which is more expensive than virgin plastic, especially in products with transparent packaging and food and bever-
age categories. The assessment by Kotak is based on the relative revenue-based exposure of companies to key variables
such as plastic, transparent plastic, food-grade plastic, flexible plastic, and MLP. Packaging costs for companies tracked
by Kotak Institutional Equities typically range from 5% to 13% of their revenues, with a significant exposure to plastic. The
implementation of more stringent PWM norms for mandatory recycling and the use of recycled content for packaging is
expected to commence from FY25 and FY26, respectively, adding to packaging costs for consumer firms.
Over the last two decades, global plastic production has nearly doubled, leading to a significant increase in plastic waste
generation. Despite efforts to curb plastic consumption, plastic waste generation in India has outpaced plastic consump-
tion due to increased use of single-use plastics. Plastic recyclers such as Ganesha Ecosphere, EPL, Uflex, and ITC are
expected to benefit from the new PWM rules, while the plastic recycling industry may witness consolidation, with chemical
recycling emerging as a long-term solution. Early entrants like Reliance Industries and Uflex are expected to lead adoption
in India, while unlisted players in plastic waste recycling stand to gain from the new rules, as per the Kotak report.
Source:- https://www.business-standard.com/markets/news/nestle-britannia-itc-winners-losers-from-plastic-waste-man-
agement-norms-124050600907_1.html

Scientists have figured out way to make algae-based plastic that completely decomposes
o address concern about the accumulation of non-biodegradable plastics in the environment, researchers at the
University of California, San Diego developed a bio-based plastic derived from algae that totally breaks down
in seven months in collaboration with the materials company Algenesis. In contrast to old petroleum-based
plastics, the novel polyurethane-based material has the ability to get compost and biodegrade naturally. This
study, published in Scientific Reports, shows that the material made of algae decomposes beyond the threshold
of microplastics; after 200 days of composting, a 97% reduction was seen. The polyurethane-made polymers may be fully
and totally biodegraded by a type of bacteria found in compost, according to the researchers. Although bio-based plastics
show great potential for environmental advantages, their broad acceptance is hampered by their high cost due to the lack
of infrastructure for algae cultivation.

Source:-https://abcnews.go.com/US/scientists-figured-make-bio-based-plastic-completely-biodegrades/
story?id=110032450

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