Ester Industries Ltd Share Price – NSE  /  BSE

Packaging, Small Cap

Net Loss of Ester Industries reported to Rs 23.72 crore in the quarter ended March 2024 as against net loss of Rs 17.75 crore during the previous quarter ended March 2023. Sales declined 6.08% to Rs 276.73 crore in the quarter ended March 2024 as against Rs 294.66 crore during the previous quarter ended March 2023.

For the full year,net loss reported to Rs 121.05 crore in the year ended March 2024 as against net profit of Rs 136.90 crore during the previous year ended March 2023. Sales declined 4.55% to Rs 1063.45 crore in the year ended March 2024 as against Rs 1114.14 crore during the previous year ended March 2023.

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Ester Industries will hold a meeting of the Board of Directors of the Company on 22 May 2024

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The India JV would build and operate an Infinite Loop India manufacturing facility which will produce a unique product offering of lower carbon footprint recycled dimethyl terephthalate (rDMT), recycled mono-ethylene glycol (rMEG) and specialty polymers in India, using the Infinite Loop technology which offers significant advantages over traditional mechanical PET recycling.

Ester and Loop have a well-established working relationship, with Ester producing Loop PET for Loop's global brand customers over the last four years.

The India JV leverages the complementary skill set of each partner by combining Loop’s innovative technology and well-established global customer base with Ester's nearly 40 years of specialized polymer production, operational proficiency, and local expertise, including sourcing of PET plastic and Polyester fiber waste feedstocks.

The DMT and MEG specialty chemicals global market size is estimated at $28 billion and forecasted to grow at a 3.7% CAGR through 2033. The market is experiencing a global shortage of DMT due to recent plant closures in Europe, and low-carbon DMT and MEG are in high demand, but market options are limited and costly.

The Infinite Loop India facility is expected to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually and Ester will toll convert the rDMT and rMEG into various grades of specialty polymers.

The planned facility in India can lower carbon emissions by up to 70% compared to virgin DMT and MEG manufactured from fossil fuels, offering chemical companies a simple drop-in supplement and circular alternative that helps them achieve their sustainability goals.

The rDMT and rMEG product offerings manufactured at the Infinite Loop India facility represent a strategic product expansion in a low-cost manufacturing environment which complements Loop's existing PET plastic and polyester fiber manufacturing business and will fuel growth by addressing the large and growing demand in the market.

This expansion enables the Infinite Loop technology to reach new markets and cater to a broader range of customers across multiple industries including the electronics, automotive, textile, cosmetics and packaging industries.

The India facility will leverage the Infinite Loop technology and existing engineering package which accelerates the lead-time towards groundbreaking, slated to occur by end of this year.

Feedstock sourcing for the facility, in which there is abundant supply from textile waste in India, is well advanced and the partners have engaged an external firm to source and secure the land for the facility. Construction is expected to be completed by the end of 2026, with commercial operations commencing in early 2027.

The India JV offers attractive economic returns without the need for substantial sustainability linked premium pricing. Total capital investment is estimated approximately at US$165 million.

Arvind Singhania, chairman and CEO of Ester Industries, commented: Ester and Loop have a long-standing working relationship with a deep alignment of values and shared commitment to circularity and driving sustainable change.

This partnership reinforces our dedication to advancing sustainable solutions in the polymer industry and by leveraging Loop's technology alongside our decades of polymer production experience, we will contribute to reducing the carbon footprint of our products, meeting the evolving needs of our customers.

Ester Industries is one of India’s leading manufacturers of Polyester Films and Specialty Polymers having a track record of nearly four decades of continually developing new and innovative products for customers across the globe.

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Ester Industries has entered into a joint venture agreement with Loop Industries Inc. (Loop), a Company under the laws of State of Nevada with principal office at Quebec, Canada, to incorporate a joint venture company in India for the purpose of engaging in the business of manufacture of DMT and/or MEG through depolymerisation of PET and/or Polyester waste using patented Loop technology.

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