Ester Industries Introduces ELITe for Sustainable Manufacturing

Ester Industries Limited, in a recent stock exchange filing, announced the incorporation of ESTER LOOP INFINITE TECHNOLOGIES PRIVATE LIMITED (ELITe) as a wholly-owned subsidiary. This development follows the execution of a Joint Venture Agreement dated May 1, 2024, between Ester Industries Limited (EIL) and Loop Industries Inc. (Loop).

ELITe was officially incorporated in India on July 22, 2024, and is intended to be the joint venture entity between EIL and Loop, with both companies holding a 50% stake in ELITe as per the agreement.

ELITe’s primary business focus will be the manufacture of DMT (Dimethyl Terephthalate) and MEG (Monoethylene Glycol) through the depolymerisation of PET (Polyethylene Terephthalate) and polyester waste. This process will utilise patented Loop technology to produce recycled DMT (rDMT) and recycled MEG (rMEG). The joint venture aims to sell these recycled monomers and other speciality products produced using rDMT and rMEG.

ELITe has been incorporated as a wholly-owned subsidiary of Ester Industries Limited. It’s important to note that the promoter group and group companies of Ester Industries do not have any direct interest in ELITe. However, upon its incorporation, ELITe has become a related party to EIL. As part of the initial capital requirements stipulated in the Joint Venture Agreement, EIL will subscribe to 2,00,000 equity shares of ELITe at a face value of ₹10 per share, resulting in an acquisition cost of ₹20,00,000.

The industry to which ELITe belongs is manufacturing, specifically focusing on the production of recycled chemical monomers from PET and polyester waste. This joint venture highlights EIL’s strategic move towards sustainable manufacturing practices and the circular economy, aligning with global trends of recycling and waste reduction.

The establishment of ELITe marks a significant step for Ester Industries Limited in diversifying its product offerings and embracing innovative technologies. The joint venture with Loop Industries Inc. is expected to leverage Loop’s patented depolymerisation technology to produce high-quality recycled monomers, addressing the growing demand for sustainable and environmentally friendly manufacturing solutions.

The creation of ELITe represents a forward-thinking approach by Ester Industries Limited, aiming to capitalise on the increasing importance of recycling in the global manufacturing landscape. This initiative not only strengthens EIL’s position in the industry but also underscores its commitment to sustainable practices and innovative technological solutions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.