Avro India eyes float of Avro Recycling IPO to fund expansion; Ghaziabad plant ramps to 1,000 MTPM by FY26
Avro India plans to list its wholly owned subsidiary, Avro Recycling, by FY28 and raise INR 200–300 crore through an initial public offering to accelerate its recycling expansion, Managing Director Sahil Aggarwal said. The company intends to use proceeds to set up additional recycling plants across India.
Avro Recycling IPO Plan & Use of Funds
Aggarwal indicated the company is exploring a standalone listing for Avro Recycling, which currently operates under the parent’s umbrella, to mobilise growth capital. “We would do a standalone listing of Avro Recycling… and that is how we will be able to raise a lot of funds,” he said, with the quantum pegged at INR 200–300 crore, subject to market conditions. Any listing by FY28 implies completion by 31 March 2028 and will be contingent on approvals and market windows.
At present, Avro Recycling primarily produces recycled plastic pellets for captive use in Avro India’s moulded furniture business. The carve-out is aimed at scaling capacity and building a pan-India network of recycling facilities as the company leans into a circular economy model.
Capacity Build-Out Gathers Pace
Separately, Avro India has commissioned a greenfield flexible plastic recycling facility at Ghaziabad through Avro Recycling. The plant currently processes 500 metric tonnes per month (MTPM) and is slated to scale up to 1,000 MTPM by the fourth quarter of FY26. The company has invested about INR 25 crore so far and plans an additional INR 30 crore by FY27.
The Ghaziabad unit targets hard-to-process waste streams such as cement, salt and sugar bags, and putty packaging—segments largely handled by the unorganised sector—using a proprietary upcycling process developed over three years of trials, the company disclosed. Management said the resulting recycled granules can substitute virgin plastic at lower cost while meeting technical standards.
“India’s plastic challenge cannot be solved through fragmented efforts. It requires scale, technology and intent,” said Sushil Kumar Aggarwal, Chairman and Whole-Time Director, adding that Avro aims to build a nationwide ecosystem to transform complex waste into raw material.
Business Background & Metrics
The group can recycle about 6,000 metric tonnes of plastic waste annually and manufacture up to five million pieces of furniture; the company has outlined plans to expand recycling capacity in phases over the next few years. Avro Recycling remains a 100% subsidiary of Avro India.
The company manufactures plastic-moulded furniture under the Avro and Avon brands from its Ghaziabad base.
Market Context & Risks
The proposed Avro Recycling IPO will need regulatory clearances, including from SEBI and the stock exchanges, and will be timed to market conditions. While the recycling thrust aligns with tightening EPR-led sustainability agendas, execution will hinge on securing steady waste feedstock and commissioning new capacities on schedule, industry reports suggest.
At a Glance
- Subsidiary listing: Avro Recycling targeted by FY28; funding plan INR 200–300 crore via IPO.
- Use of funds: Set up additional recycling plants; accelerate pan-India footprint.
- New facility: Ghaziabad greenfield plant at 500 MTPM, scaling to 1,000 MTPM by Q4 FY26.
- Capex: ~INR 25 crore invested; ~INR 30 crore more planned by FY27.
- Current scale: Website cites 6,000 MTPA recycling capacity; five million furniture units per year.
Conclusion
Avro India’s plan to float Avro Recycling IPO by FY28 signals a push to ringfence and fund its waste-to-wealth vertical at scale. With a newly commissioned plant and a capacity ramp underway, execution on feedstock, technology and rollout will determine how quickly the recycling arm can turn growth capital into cash flows.
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