Chennai: Global investment firm Circulate Capital will invest $9.5 million in Jayachandran Global Refineries Pvt Ltd (JC Global), marking its eighth investment in India and the first deployment from its $300 million Asia Fund II into South Asia.Circulate Capital has signed definitive documents to acquire a significant minority stake in the Coimbatore-based plastics recycler, following the recent $220 million first close of the fund. The investment could be followed by additional capital to support JC Global’s long-term expansion.JC Global processes plastic waste, including material from automobiles and large appliances, into recycled plastics used by the automotive and electronics industries. The company currently operates a single site and plans to use the new capital to build an integrated multi-plant recycling network.The expansion will include increasing production of recycled polyolefins such as polypropylene (PP), high-density polyethylene (HDPE) and ABS resins, commissioning new plants in Tamil Nadu and integrating chemical recycling capacity to recover residual plastics left over from mechanical recycling.Janavi Papriwal, investment partner and co-head for South Asia at Circulate Capital, said JC Global’s 25 years of experience and strong network made it an ideal partner to bridge India’s critical recycling infrastructure gap.JC Global plans to scale its recycling capacity to nearly 100,000 tonnes of plastic waste a year. This is expected to help avoid more than 190,000 tonnes of CO2e emissions annually, according to Circulate Capital.The investment will also support responsible sourcing and greater traceability across the recycling value chain, including initiatives aimed at improving the livelihoods of informal waste workers.Pradeep Chandrasekaran,CMD, JC Global, said the investment would help the company build an integrated polyolefins recycling platform in India, while professionalising operations and expanding its capacity.Circulate Capital said it is committed to deploying at least half of the target $300 million corpus of its Asia Fund II in South Asia, strengthening its focus on the region’s circular economy.
