SLMG Beverages is one of the leading bottlers for Coca-Cola in India. Credit: Yakov Oskanov via Shutterstock.com.

SLMG Beverages, a bottler of Coca-Cola products in India, is working with Dalmia Packaging, to set up a PET bottle recycling plant in the country.

The plant, a joint venture for the two companies, will be developed with an investment of Rs0.9-1bn ($10.7m-$11.99m), the Hindu Businessline reported.

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The facility will have an annual capacity of 36,000mt and produce 24,000mt of plastic for PET bottles. 

The location for the plant has been selected between the two cities of Lucknow and Kanpur in the state of Uttar Pradesh. 

Machinery procurement for the project is currently underway.  

The food-grade plastic recycling plant is expected to contribute to 20% of SLMG’s sales. 

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SLMG, which operates seven plants and a daily bottling capacity of 410m units, is a supplier for Coca-Cola in Uttar Pradesh. 

It supplies 90% of the Indian state’s demand and has a presence in other states such as Uttarakhand, Bihar and Madhya Pradesh. 

SLMG Beverages chairman and MD SN Ladhani was quoted by The Hindu Businessline as saying: “We have written to the central government for getting the same concessions extended to recyclers in other industries. We expect to start production in two years.”