Joint Venture1 Feb 2025, 02:43 am
Race Eco Chain Ltd Signs Joint Venture Agreement with Ganesha Ecosphere Ltd for Recycled PET Washing Plants
AI Summary
Race Eco Chain Ltd (RACE) has executed a Joint Venture Agreement with Ganesha Ecosphere Ltd (GANESHA) to set up washing plants for producing pet flakes through their Joint Venture Company, 'Ganesha Recycling Chain Private Limited'. The investment in recycled PET is a strategic response to the increasing demand driven by ESG mandates and regulatory requirements in India. RACE and GANESHA will hold the Share Capital on fully diluted basis and voting rights in the JVC in the following ratio: RACE - 51% and GANESHA - 49%. The JV Partners will have the right to appoint equal number of directors on the Board of Directors of the JVC.
Key Highlights
- RACE and GANESHA have signed a Joint Venture Agreement for setting up washing plants for producing pet flakes.
- The investment in recycled PET is a strategic response to the mounting demand driven by ESG mandates and regulatory requirements in India.
- RACE and GANESHA will hold the Share Capital on fully diluted basis and voting rights in the JVC in the ratio of 51% and 49% respectively.
- JV Partners will have the right to appoint equal number of directors on the Board of Directors of the JVC.
- The JV is expected to yield significant environmental benefits and solidify RACE's leadership in the industry.