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Supporting GRP Limited’s recycling activities

Project

Sustainable industries
GRP Limited
Signature date
Location
India
Financing tool
Loan
Financing amount (Euro)
15 000 000
Customer
GRP Limited
Type of customer
Company
Country of headquarters
India
Project number
PIN1131
Environmental and social ranking
B+
Climate co-benefits
Project with climate co-benefits
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Proparco has allocated a €15 million loan to GRP Limited to help it scale up its recycling activities and offer new services.

Client presentation

Founded by Mr. Rajendra V. Gandhi in 1974, GRP Limited is a tire recycling company. It started with recycled rubber as the main product and has recently diversified into other recycled products. Based in Mumbai, the company has 6 manufacturing facilities in 4 locations, with a total capacity of 87,200 million tons per annum (MTPA). GRP serves a broad international client base, including eight of the world’s ten leading tire manufacturers, such as Michelin, Bridgestone and Pirelli.

Project description

The circular economy is central to developments in the tire industry, driven by increasingly stringent environmental regulations and the ambitious climate commitments of manufacturers. These initiatives promote the use of recycled materials and encourage more sustainable manufacturing practices. GRP plays a key role in this transition by serving a prestigious international client base.

The credit line will enable the company to scale up its existing activities and initiate a strategic diversification to meet growing global demand for circular solutions. It will enable GRP to increase the production capacity on its existing lines, in particular for recycled rubber, and launch a new innovative production line for recovered carbon black and biofuels.

Project impact

Climate

  • This financing has 100% climate mitigation co-benefits, according to Articles 4 and 5 of the “Solid Waste Management” category of AFD’s Taxonomy: “Material recovery from separately collected source-segregated waste involving mechanical or non-mechanical processes”
  •  Contribution to avoided emissions of -219 ktCO2e/year

Biodiversity

  • The project is aligned with Proparco’s biodiversity matrix and meets objective 6 “Targeted/localized improvement in the environmental performance of an investment or significant reduction in local and chronic degradation pressures of anthropogenic origin”
  • In this respect, 20% of this financing is eligible as biodiversity co-benefits

The project will thereby contribute to the achievement of three SDGs (8,13,15).