Symphony Environmental Technologies PLC (AIM:SYM) said its joint venture in India reported a “significant increase” in sales of its d2w biodegradable technology after being formed last November.
The d2w masterbatch technology being sold by the joint venture with Indorama Corporation enables the manufacturing of non-biodegradable plastics into biodegradable and environmentally safe products.
Sales are expected to increase to more than £250,000 per month from early 2023, the AIM-listed company said, based on current enquiry and order activity.
Further investment is being made by Symphony India to enhance its marketing and sales capability, with five new experienced employees expected to join shortly in order to try and win a greater share of a market that the pair estimate could generate over £10mln in annual sales during the course of 2024.
Symphony said the demand is being driven by legal changes in July that permit government-approved biodegradable plastic products to be exempted from restrictions that would ban most plastic film products unless they are above a certain thickness.
Manufacturers and brand owners using certified biodegradable plastic materials will be free from this obligation, it said, meaning d2w technology has “a competitive advantage in a country with a population of circa 1.4bn”.
Michael Laurier, CEO of Symphony, said: "India is a country whose environment suffers from serious plastic pollution, but plastics are vital for food safety in this populous nation. These progressive regulations are therefore a welcome step in combatting plastic pollution.
"Symphony India is extremely well placed to help its customers in the region to be compliant with the Regulations by making their plastic products safer and more sustainable, without having to sacrifice the best properties of these materials, nor having to modify their manufacturing process or pay substantially increased costs.”