Shares of recycled packaging companies surged on Wednesday after the government’s mandate requiring recycled content in food and beverage (F&B) packaging came into effect.
Ganesha Ecosphere hit its 20% upper circuit at ₹1,022.70 on the BSE, supported by a sharp rise in trading volumes. The stock, however, remains below its 52-week high of ₹1,738.80 recorded in April 2025.
Uflex also rallied, climbing 18% to ₹393.70, as investor sentiment improved across the packaging segment.
The rally follows a government notification mandating the use of at least 40% recycled material in F&B packaging from April 1, 2026. The requirement is set to increase to 60% by 2028–29, as part of India’s broader push to reduce plastic waste and promote a circular economy.
The regulation is expected to reshape sourcing strategies across the country’s large FMCG sector, with companies required to incorporate post-consumer recycled materials into packaging formats such as PET bottles, rigid plastics and multilayer films.
Industry participants say companies with established recycling capabilities are likely to benefit. Ganesha Ecosphere, one of India’s largest PET recyclers, and Uflex, a major flexible packaging player, are seen as key beneficiaries of rising demand for compliant materials.
The move is aligned with the government’s Extended Producer Responsibility (EPR) framework, under which producers are accountable for plastic waste collection and recycling. Enforcement of EPR norms has intensified over the past year, with tighter compliance mechanisms and penalties.
However, the transition is expected to pose challenges for FMCG and beverage companies. Higher costs of recycled resins, maintaining food-grade quality standards, and scaling up recycling infrastructure remain key concerns for the industry.
Demand for food-grade recycled PET in India is projected to grow at over 25% annually, driven by regulatory mandates and increasing consumer awareness around sustainability.
Market participants say the latest policy provides long-term visibility for recycling-focused companie