Delta Capital, Daiwa invest $12.6m in Myanmar PET bottle recycler CPC

Photo by Eduardo Soares on Unsplash.

Myanmar-focused private equity firm Delta Capital Myanmar and Daiwa PI Partners have jointly invested $12.6 million in plastic bottles recycler Commercial Plastics Company (CPC).

The investment was made through Delta Capital’s Myanmar Opportunities Fund II and Daiwa PI’s  Daiwa Myanmar Growth Fund. This is Delta Capital’s first control deal as also Daiwa Myanmar Growth Fund’s maiden investment, per a joint announcement.

“The investment will enable CPC to […] become the first food-grade bottle-to-bottle recycler in Myanmar with high operating standards, capable of producing US Food and Drugs Administration and EU Food Safety Authority compliant food-grade recycled Polyethylene Terephthalate (PET), and supply both domestic and overseas PET bottle converters and beverage manufacturers,” the announcement said.

The production, consumption and disposal of plastics have become a global pressing issue. Ellen MacArthur Foundation and the World Economic Forum have predicted that, by 2050, there will be more plastic than fish in the oceans.

In Myanmar, a country of 54 million people, it is estimated that approximately 2 billion PET bottles are consumed every year, equivalent to 40,000 metric tonne, according to the announcement. Myanmar is estimated to have a PET bottle collection rate of 64 per cent, compared to an average of 26 per cent in Southeast Asia, leading to more favourable opportunities for recycling in the country, it added.

CPC expects that post-expansion, it will collect and recycle over 20 per cent of the PET bottles produced in Myanmar and save over 15,000 metric tonne of carbon dioxide emission per year.

“With this additional investment, CPC will cement its leadership role in the Myanmar recycling market, push us higher up the value chain into food-grade recycled PET and help address this critical environmental issue,” commented Steven Granot, chairman of CPC.

Delta Capital Myanmar managing partner Nick Powell said: “We’re excited to be part of this business that will place Myanmar at the forefront of the global move towards full circle plastics recycling that will have a long lasting social and environmental impact.”

Powell told DealStreetAsia earlier that his firm focused on ESG (environmental, social and governance) investing with its $70-million second fund.

The firm has made nine investments including telecom company Frontiir and financial service firm Easy Microfinance. Delta Capital has raised two private equity funds and has $120 million in assets under management.

Daiwa PI Partners set up the Daiwa Myanmar Growth Fund in July 2019 with total committed capital of $30 million, targeting the consumer goods and services-related sector. Daiwa PI Partners has made six investments in Myanmar, including DO Microfinance, Frontiir, motorcycle rental service Rent 2 Own Holdings and ride-hailer Oway.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.