Our investment
Description of the investment.
Description of the investment.
We have committed INR 2,050 million (c.$24 million) to Magpet Polymers Pvt Ltd (Magpet). Our loan will support Magpet in developing India’s first integrated bottle-to-bottle food-grade recycling plant in Kharagpur, West Bengal, and in sourcing plastic waste across East and North-East India.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Improved environmental sustainability through higher rates of recycling (SDG 12.5) Improved economic opportunities and economic growth decoupled from environmental degradation (SDG 8.4, 8.5) |
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How?
| Primary | Secondary |
|---|---|
|
Provision of capital for greenfield development of PET (polyethylene terephthalate) recycling capacity, with associated job creation. |
Catalysing Markets: Developing a commercial track record for advanced recycling solutions in India and demonstrating the sector’s commercial viability over time, ultimately leading to increased private investment and scaling of the sector. Economic enabler: by supporting the growth of other firms through the production of an intermediary good, specifically, recycled packaging inputs/products. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
India |
India is estimated to generate c.13 million tonnes of plastic waste per year. 60 per cent of this is recycled, The states that Magpet operates in – Assam and West Bengal – generate 9 per cent of India's total plastic waste, but lack local recycling capacity. |
| Employees |
India |
Magpet has a total workforce of 487, with c.80 per cent of the workforce being low/semi skilled workers, and 3 per cent of the overall workforce being female. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Our funding will support a 42,000 MT increase in recycled polyethylene terephthalate (rPET) flakes and pellets production capacity. Magpet also estimates the expansion fwe're funding will create 140 new jobs, 86 per cent of whom will be low/semi skilled workers considered to be low-income. |
Depth: The recycling capacity built will lead to an emissions reduction of c.51,000 MT CO2e per annum in reduced virgin plastic use in end-products. Duration: given the potential to catalyse the recycling market in India, the impact is expected to be transformational and long-lasting. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Our primary contribution is financial, by providing financing for greenfield recycling operations which is not available in sufficient quantity from commercial banks, as well as on the longer tenor required by the company to align with its commercial needs. |
Risk
Execution RiskThis is a greenfield project in a nascent sector and represents a major expansion into a new activity, with the scale of impact achieved (both climate and jobs) tied directly to effective project execution. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The investment is classified as Medium-High risk from an E&S perspective. An ESAP has been agreed with Magpet Polymers to drive the development of an IFC PS-aligned ESMS, to increase E&S capacity, to improve fire prevention and control at certain facilities and to drive the development and implementation of a supply chain risk management plan.
Environmental and social risk
Medium-High
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- March 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- March 2025
- Project number
:
An identifier number shared by investments in the same project.
- D6600
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Manufacturing
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Environmental & Facilities Services
- Investment type :
- Debt
- Start date :
- October 2024
- Amount :
- $24.43m
- Currency of investment :
- INR
- Domicile
:
The company or investment fund’s place of incorporation.
- India
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Climate finance
:
Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.
- Fully qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Mitigation
- First published
