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 is poised to make a significant impact in the global sustainable materials market through its joint venture, Ester Loop Infinite Technologies Pvt. Ltd. (ELITe). The company has announced strategic partnerships and expansion plans that will position India as a key hub for high-performance chemically recycled polyester solutions.

Global Expansion through Strategic Partnerships

ELITe, a 50:50 joint venture between Ester Industries and Loop Industries of Canada, is set to supply eco-friendly materials to global markets through key partnerships. The company's upcoming Infinite Loop™ manufacturing facility in Gujarat will play a crucial role in this expansion.

Partnerships with Industry Leaders

Taro Plast S.p.A.

ELITe has signed an offtake agreement with Taro Plast S.p.A., a global leader in thermoplastic compounds. Under this agreement, ELITe will supply Loop™ Dimethyl Terephthalate (DMT) from its India facility for use in automotive and specialty polymer applications.

Hyosung TNC

Loop Industries and South Korea's Hyosung TNC have entered into a strategic alliance to support the shift by global brands to circular polyester. This partnership will combine Loop's Infinite Loop™ depolymerization technology with Hyosung TNC's expertise in advanced textile materials.

Innovative Technology and Sustainable Solutions

ELITe will utilize Loop's patented depolymerization technology and Ester's polymerization expertise to transform polyester textile waste into Loop's high-purity Twist™ polyester. Hyosung TNC will then convert this material into high-performance yarns under its Regen™ portfolio, which is trusted by leading apparel and textile brands globally.

Facility Details and Production Capacity

The Infinite Loop™ India facility in Gujarat is designed to produce:

The planned investment for this facility is approximately ₹1,600.00 crores, with provisions for further expansion to add another 100,000 tonnes of rPET resin capacity annually.

Environmental and Economic Impact

Mr. Arvind Singhania, Chairman of Ester Industries, commented on the development, stating, "These early commitments from leading international players reflect the global confidence in our project, while highlighting India's emergence as a critical contributor to the sustainable materials ecosystem."

The project aligns with the Indian government's vision of circular fashion and mission LiFE (Lifestyle for Environment). By upcycling textile waste, the initiative aims to address challenges of landfill accumulation and resource depletion while creating new livelihood opportunities and fostering innovation in the textile ecosystem.

Future Outlook

With operations scheduled to commence by the end of 2027, ELITe's Gujarat plant is set to position India as a key player in the global sustainable materials market. The partnerships and agreements announced mark the beginning of commitments by international brand owners for material from ELITe, underscoring India's growing significance in providing sustainable materials for global markets.

As Ester Industries continues to expand its reach and impact through ELITe, investors and industry observers will be watching closely to see how this venture transforms the landscape of sustainable materials and circular economy initiatives in India and beyond.