Ester Industries has reached a significant milestone in its sustainable materials venture through its joint venture ELITe (Ester Loop Infinite Technologies Pvt. Ltd.). The company announced that ELITe has awarded the detailed engineering contract for its Infinite Loop India project to Toyo Engineering India Private Limited, representing the final engineering phase ahead of construction.

Engineering Contract Award Details

ELITe has selected Toyo Engineering India Private Limited, a globally recognized EPC firm with over four decades of experience in executing large-scale industrial and petrochemical projects across India. This strategic partnership follows the successful completion of front-end engineering design (FEED) by Tata Consulting Engineers.

Project Economics and Financing Progress

The project maintains strong economics with prudent capital discipline. ELITe has realized savings of USD 5.00 million from land acquisition efforts, ensuring the facility is trending on budget. The debt financing process is running as per schedule, with multiple term sheets received from international lenders, representing strong endorsement of the project's attractive economics.

Facility Specifications and Market Position

The Infinite Loop India manufacturing facility in Gujarat is strategically positioned to address demand in the packaging and textiles sectors. The facility is designed with an annual production capacity of 70,000 metric tonnes of PET resin and will serve as India's first Infinite Loop facility for true circularity.

Strategic Partnerships and Customer Base

The joint venture recently announced a multi-year offtake agreement signed with Nike, which is positioned as the facility's anchor customer. ELITe also maintains partnerships with Taro Plast S.p.A. for automotive applications and Hyosung TNC for textile materials, demonstrating strong market confidence in the project.

Leadership Commentary

Mr. Arvind Singhania, Chairman & CEO of Ester Industries Limited, commented on the development: "Our detailed engineering partnership with Toyo marks a meaningful step forward in delivering India's first Infinite Loop facility. With the land secured and Nike confirmed as our anchor customer, the project now stands on a strong technical foundation with clear commercial visibility."

Adel Essaddam, Chief Operating Officer of Loop, stated: "We are excited to collaborate with Toyo on this critical phase as we deliver India's first Infinite Loop facility, a model for true circularity, engineered to convert low-value textile and plastic waste into virgin-quality resin."

Kishor Salunke, Chief Operating Officer (SSBU) of Toyo Engineering India, expressed: "Toyo is genuinely delighted to be associated with ELITe in the execution of the Chemical Recycling PET Project at Bharuch, Gujarat. The recycling of PET into monomers and then back to a virgin quality PET, is a distinctive initiative."

Technology and Environmental Impact

The facility will utilize Loop's patented depolymerization technology combined with Ester's polymerization expertise to transform polyester textile waste into high-purity materials. The project aligns with the Indian government's vision of circular fashion and mission LiFE (Lifestyle for Environment), addressing challenges of landfill accumulation and resource depletion while creating new livelihood opportunities.

Ester Industries has announced a strategic move to strengthen its presence in the United States market. The company has launched a new wholly-owned subsidiary in the United States with an initial capital investment of up to $1.50 million (approximately ₹12.45 crore).

Strategic Expansion

The new subsidiary, whose name is yet to be finalized, will focus on enhancing Ester Industries' marketing activities and product enhancement operations in the US market. This move aligns with the company's global expansion strategy and aims to capitalize on opportunities in one of the world's largest economies.

Key Objectives

According to the company's filing with the stock exchanges, the new wholly-owned subsidiary (WOS) is being established with several key objectives:

1. Marketing and customer support
2. Exploring new business opportunities
3. Undertaking value-added manufacturing
4. Carrying out other permissible business activities

Regulatory Approvals

Ester Industries has stated that the establishment of the US subsidiary is subject to all applicable approvals from relevant governmental, regulatory, and statutory authorities in both India and the United States.

Financial Commitment

The company has disclosed that the initial capital for the wholly-owned subsidiary will be in the form of cash, with an investment of up to $1.50 million.

Timeline and Next Steps

The exact timeline for the completion of the subsidiary's incorporation was not specified in the announcement. However, Ester Industries has committed to providing necessary updates once the WOS is fully incorporated and operational.

This strategic expansion into the US market represents a significant step for Ester Industries as it seeks to bolster its international presence and drive growth in key global markets.

Investors and stakeholders will be keenly watching how this new subsidiary impacts Ester Industries' performance and market position in the coming quarters.