Avro India has announced strategic plans to list its wholly-owned subsidiary Avro Recycling on stock exchanges by FY28, with the company targeting to raise up to Rs 300 crore through the public offering. The move represents a significant step in the company's expansion strategy for its recycling operations.

IPO Strategy and Fund Mobilisation

Managing Director Sahil Aggarwal revealed the company's plans for a standalone listing of Avro Recycling during a company event. The subsidiary currently operates under the umbrella of Avro India Limited, focusing on captive production of recycled plastic pellets for the parent company's furniture manufacturing business.

"We would do a standalone listing of Avro Recycling Limited as it is under Avro India Limited right now, and that is how we will be able to raise a lot of funds," Aggarwal explained. The fundraising amount is expected to range between Rs 200-300 crore in a single tranche, though this remains subject to prevailing market conditions at the time of listing.

Expansion Plans and Fund Utilisation

The proceeds from the proposed IPO will be primarily directed towards establishing additional recycling plants across India. This expansion strategy aligns with the company's focus on scaling up sustainable solutions in the plastic recycling sector. The funds will enable Avro Recycling to increase its processing capacity and geographical presence in the growing recycling market.

Current Operations and Capacity

Avro India's existing operations demonstrate substantial scale in both recycling and manufacturing segments. The company has established significant operational capacity across its business verticals, positioning it well for the planned expansion.

The integrated business model allows Avro Recycling to supply recycled plastic pellets directly to Avro India's furniture manufacturing operations, creating a sustainable circular economy approach within the company's operations.

Market Positioning and Business Model

Avro India operates primarily in the plastic furniture manufacturing sector, with Avro Recycling serving as a critical component of its supply chain sustainability strategy. The captive recycling operations ensure a steady supply of raw materials while contributing to environmental sustainability goals. The planned listing will provide Avro Recycling with independent access to capital markets, enabling accelerated growth in the recycling segment.

The timing of the IPO by FY28 provides the company with adequate preparation time to strengthen its operational metrics and market positioning ahead of the public offering, subject to market conditions and regulatory approvals.

Avro India Limited has announced the launch of India's largest flexible plastic recycling facility, marking a significant milestone in the country's waste management and circular economy initiatives. The company made this announcement through a press release on January 8, 2026, under Regulation 30 of SEBI listing requirements.

Major Investment and Facility Details

The new recycling facility operates under AVRO Recycling Limited, a wholly owned subsidiary of Avro India Limited. The state-of-the-art greenfield facility is located in Ghaziabad and represents a substantial investment in sustainable technology.

Innovative Technology and Market Impact

The facility addresses one of India's most complex environmental challenges by processing difficult-to-recycle plastic waste. After more than three years of intensive research, trials, and technological innovation, Avro has developed a proprietary system capable of upcycling complex plastic waste at industrial scale.

Target Waste Materials:

• Cement bags
• Salt bags
• Sugar bags
• Putty bags
• Calcite packaging

The company's technology enables the responsible processing of nearly 1 million metric tonnes per annum (MTPA) of such waste generated in India. The recycled granules produced are fully utilised in manufacturing high-value end products including plastic furniture, air coolers, washing machines, and automotive components.

Cost Advantages and Market Positioning

The recycled granules offer significant cost advantages while maintaining quality standards. These materials are available at up to 40% lower cost than virgin plastic, helping manufacturers remain cost-efficient while meeting environmental compliance requirements.

With the implementation of Extended Producer Responsibility (EPR) norms mandating at least 30% recycled plastic content in rigid plastics, Avro India has positioned itself as the largest and most reliable organised player in the flexible plastic recycling space.

Company Background and Market Presence

Founded in 2002, Avro India Limited has established itself as a leading manufacturer of plastic-moulded furniture with nationwide prominence. The company is listed on both NSE and BSE and has built an extensive distribution network.

Future Expansion Plans

Looking ahead, Avro India is developing a pan-India network of 'mother and baby' recycling plants aimed at decentralising waste processing and accelerating India's transition to a circular economy. The company plans to expand through future greenfield recycling projects as part of its long-term sustainability vision.

According to Mr. Sushil Kumar Aggarwal, Chairman and Whole-Time Director, the company's vision extends beyond recycling to building a nationwide ecosystem that transforms waste into opportunity while protecting the environment. Through innovation, scale, and collaboration, Avro aims to position India as a global leader in sustainable plastic management.