P-commerce holds opportunities for economic growth

In its 2019 publication on plastic waste management, the Ministry of Housing and Urban Affairs has estimated that about 60 per cent of India’s plastic waste is recycled. Where did the rest go? The answer lies in clogged drains, every water body, and pristine forests. Wherever man has stepped, plastic has followed.

Chips, chocolates, clothes, even your new car—every consumable product is presented to customers in a neatly printed plastic package, most of which finds its way to a dump, storm drain, or is just thrown on the road. Be it microplastics that can enter your bloodstream or bottle caps that are found to be ingested by marine life, our way of life is being threatened by plastic waste.

On its part, the government has already taken firm steps to use plastic responsibly by notifying the Plastic Waste Management Rules and guidelines thereunder on Extended Producer Responsibility (EPR). EPR is a policy approach under which select businesses, consisting of Producers, Importers, and Brand Owners (PIBOs), are made responsible for safe plastic waste management.

EPR targets have been provided for packaging made up of rigid plastic, flexible plastic (of single or multi-layer), and carry bags made of compostable materials. PIBOs will need to act quickly as they must ensure 100 per cent EPR compliance in the next couple of years.

This presents a huge opportunity for P-commerce in India -- circular economy opportunities in plastic waste, made necessary by the implementation of plastic waste management rules. Emerging business opportunities would be multi-sectoral in nature, spanning the entire plastic value chain – both upstream and downstream.

With the release of the EPR rules, PIBOs have to consider options for reducing process waste, redesigning plastic packaging to enhance recycled plastic content, and developing and mainstreaming alternative sustainable materials. This shift will require research and innovation, developing business models, creating value chains on the ground, developing infrastructure, building the capacity of stakeholders, securing financing, etc, each of which will present new opportunities.

Waste collection and sorting: Waste collection and sorting is a key step towards a circular economy. Sorting of the mixed waste needs infrastructure. Business opportunities exist for NGOs and private developers to set up Material Recovery Facilities (MRFs) and for technology providers to deploy best-in-class waste sorting machines.

Reuse and refill: Brand owners, mandated for category I (rigid plastic), are required to adopt the reuse and refill of packaging. This would open opportunities for NGOs, private waste companies, stockists, and distributors to undertake campaigns to create awareness and change consumer behaviour, collect rigid packaging, undertake local cleaning, and refill and sell products locally.

Recycling infrastructure and system creation: EPR also focuses on recycling via authorised recyclers. Opportunities would arise for private developers to convert plastic waste into various products like tiles, boards, and even boulders for housing, etc.

End-of-life treatment: End-of-life disposal refers to using plastic waste for the generation of energy, which includes co-processing or converting waste to oil. Currently, end-of-life applications are limited to a few players in India, and opportunities exist for plastic waste developers to develop infrastructure, systems, and processes.

Credit market: EPR guidelines also permit the sale and purchase of excess credit certificates, which can be carried forward or offset against previous year targets. The opportunity for cloud- or AI-based systems for calculating and allocating credits, tracking vendors or recyclers, maintaining online records for environmental returns, etc., will open up.

As per estimates, the plastic waste management business globally was valued at Rs 2.5 lakh crore in 2021, with a projected CAGR of 3.4 per cent over the next decade. Realistic estimates place India as the third largest plastic waste generator globally (World Bank). Assuming the prevailing recycling rates, as mentioned above, the untapped annual plastic waste business in India would be 5 per cent of global volumes, i.e., Rs 13,000 crore. As such, P-commerce will attract investment, catalyse innovations, and create livelihood opportunities.

(The writer is Director, Water, Sanitation & Hygiene (WASH) at RTI International India)