Ester Industries Limited (NSE: ESTER) has announced a significant partnership that positions the company at the forefront of sustainable materials supply in the global athletic wear market. Through its joint venture with Loop Industries, Ester Industries is set to provide eco-friendly materials to Nike, the world's leading athletic footwear and apparel company.

Key Highlights of the Agreement

• Ester Loop Infinite Technologies Private Limited (ELITe), a joint venture between Ester Industries and Loop Industries, will supply sustainable materials to Nike.
• The agreement is part of a multi-year offtake arrangement, securing a long-term partnership.
• Nike will be the anchor customer for the Infinite Loop™ India manufacturing facility.
• The facility will produce Twist™, Loop's branded virgin-quality polyester resin made exclusively from textile waste.

Environmental Impact and Traceability

The partnership is expected to yield significant environmental benefits:

• The Infinite Loop™ India facility is projected to achieve an 81% reduction in greenhouse gas emissions.
• Annual savings of up to 418,600 tonnes of CO₂ emissions are anticipated.
• All products made with Twist™ will feature full traceability through Loop's proprietary chemical tracer technology.

Strategic Implications

This agreement marks a pivotal moment for Ester Industries, highlighting its commitment to sustainability and innovation in the textile industry. Mr. Arvind Singhania, Chairman of Ester Industries Limited, expressed pride in the partnership, stating, "It is a privilege to partner with Nike in advancing their global sustainability ambitions. This partnership reflects the trust and confidence leading multinational brands place in ELITe's ability to deliver verifiable, high-performance recycled materials at scale."

Market Position and Future Outlook

The collaboration with Nike, a global leader in athletic wear, positions Ester Industries strategically in the growing market for sustainable materials. This move aligns with the increasing demand for eco-friendly products in the fashion and sportswear industries.

As the world shifts towards more sustainable practices, Ester Industries' partnership with Loop Industries and Nike could potentially open doors to similar collaborations with other major brands, further solidifying its position in the eco-friendly materials market.

Conclusion

Ester Industries' latest venture represents a significant step towards circular economy practices in the textile industry. By partnering with global giants like Nike and innovative companies like Loop Industries, Ester is not only contributing to environmental sustainability but also potentially enhancing its market position and long-term growth prospects in the evolving landscape of eco-friendly materials.

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.