FAQs

Do you have further questions about Fair Recycled Plastic?
Here you find answers to many different aspects of the initiative.

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Fair Recycled Plastic generally

Plastic pollution in the environment and oceans is a serious problem that is rightly attracting a lot of attention. Solutions to the problem need to be found urgently. Cofresco is a subsidiary of the Melitta Group and a significant proportion of its products are made of plastic, so we consider it our duty to contribute to the fight against plastic pollution in the oceans and on land. The Melitta Group and Cofresco want to be part of the solution rather than part of the problem. We are therefore committed to restructuring plastic production and recycling. We are convinced that only the consistent and comprehensive implementation of the circular economy principle can reduce the burden on the environment and lead to a world in which raw materials are used more effectively. Fair Recycled Plastic aims to avoid pollution caused by microplastics and plastics in the ocean by collecting, processing and reusing plastic waste. It represents an important milestone in the overall commitment to sustainability at the Melitta Group and Cofresco.

Fair Recycled Plastic is a social business that simultaneously focuses on different areas such as the environment and society, it aims to have a positive impact on the environment and society in a number of ways.

It seeks to prevent pollution caused by microplastics and plastics in the ocean by collecting, processing and reusing plastic waste. Furthermore, the establishment of the social business also has economic and social effects. Directly and indirectly, it creates jobs and fosters formal structures in the waste sector. This will create the conditions for a sustainable improvement in the working and living conditions of about 2,000 waste pickers and their families. The profits generated by the social business will be used to support two non-profit organisations that work to improve medical care for waste pickers and their families and offer supplementary educational opportunities for their children.

In Sanskrit, the symbol stands for ‘purity’. As Fair Recycled Plastic is all about cleaning up the environment and ridding it of waste, the symbol is very appropriate. Sanskrit is one of the 22 recognised national languages of India and the most important language in Hinduism.

‘Vishuddh’ is a word from the Indian national language Sanskrit and means ‘purity’. In the combination Vishuddh Recycle, the name can therefore be understood as ‘purity through recycling’ or ‘pure reprocessing’ of the materials.
Vishuddh Recycle also sounds like ‘We should recycle’.

As Fair Recycled Plastic is all about cleaning up the environment and ridding it of waste the name is very appropriate.

Fair Recycled Plastic is the name of the overall initiative and a milestone in the Melitta Group and Cofresco’s commitment to sustainability. Vishuddh Recycle is the company name of the social business founded for the initiative in Bangalore.

Social businesses are run in such a way that the parties involved (Melitta Group/Cofresco and Yunus Social Business) can first reclaim the sums they have invested. Profits will also be invested in the expansion of the company and donated to social projects. The exact measures are decided jointly by the participating companies or joint venture partners at the annual board meeting. In the case of Fair Recycled Plastic, Cofresco has supported social projects right from the start.

Together with Yunus Social Business, we decided to support two charitable projects that provide better health care and additional educational opportunities for the waste pickers and their families. This is a valuable aspect of our commitment to the waste pickers.

  1. Medical Care: The NGO ‘Smile Foundation’ based in India offers free primary medical care for waste pickers and their families. Mobile clinics regularly drive through the poor districts of Bangalore. The specialised staff not only offer medical support, but also provide information on hygiene and other preventive health care issues. A ‘Smile on Wheels’ van conducts around 15,000 medical examinations every year.
  2. Education: The ‘Hasiru Dala Trust’ runs educational activities such as community libraries and workshops in the poor areas of Bangalore. The aim is to promote the social, emotional and cognitive development of the children of waste pickers through alternative forms of tutoring and to help the children work towards achieving better school qualifications. The programme has provided help to several hundred children.

To ensure that the waste pickers and their families benefit from the medical and educational services as early as possible, Cofresco has been supporting these organisations financially right from the start of production until the social business generates the expected profit.

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH uses funds from the develoPPP program of the German Federal Ministry for Economic Cooperation and Development (BMZ) to support entrepreneurial projects that generate sustainable development benefits. The develoPPP project Fair Recycled Plastic with Cofresco Frischhalteprodukte GmbH & Co. KG is also financed with funds from this program, among others.

In the first place, the Melitta Group and Cofresco will concentrate on successfully establishing the social business in Bangalore. Afterwards, we hope to work with other stakeholders to establish and expand similar structures locally or, potentially, in other regions and countries.

There is no question that plastic ending up as waste in the environment is harmful. And the pollution of the environment and oceans by plastics is a serious problem to which a lot of attention is rightly drawn and for which solutions are urgently needed. However, plastics are not automatically bad. A distinction must be made between positive and negative use of plastics. It is hard to imagine life without plastics. Among other things, they enable better hygiene, can be very useful for transporting products and help to extend the shelf life of food. They have properties that other materials either do not provide at all or can often provide only with a worse eco-balance. In such cases plastic is the more environmentally friendly alternative. Plastics must be recycled and reused, because as a waste product they are a valuable raw material. In order for plastics to be reused, they must be properly collected and processed. This is where Fair Recycled Plastic comes in.

Plastics are not automatically bad. Among other things, they enable good hygiene, can be very useful for transporting products and help to extend the shelf life of food. They have properties that other materials do not provide at all or can often provide only with a worse eco-balance. However, it is essential that plastics are correctly collected and consistently recycled and reused. This is where Fair Recycled Plastic comes in.
As part of its ‘Mission 100 % Circular’ strategy, Cofresco has been working hard for several years to steadily increase the proportion of sustainable materials in its products and thereby to conserve oil reserves and prevent climate change. The company has set itself the goal of having as many products as possible fully participate in the reusable material cycle by 2025. These products will be made exclusively from recycled or renewable materials and can be fully recycled or composted after use.

The corona crisis has impacted the work and operations of Fair Recycled Plastic in a number of ways.
For example, the pandemic caused long delays to the construction work on the production hall. The construction work had to be completely stopped for a time. This meant that the reconstruction and expansion of the production hall fell in the monsoon period. As the relevant authorities were temporarily closed, the required registrations and licences were delayed too.
Although restrictions were intermittently eased, fewer workers were available in Bangalore and the authorities were working with limited staff. This resulted in longer processing times. As well as all this, temporary border closures within India significantly hampered the procurement of essential materials.

Vishuddh Recycle paid for vaccination of all its employees. Besides, the entire workforce has been protected as well as possible with strict safety and hygiene measures throughout the pandemic. These measures were, of course, important and necessary, however, they also led to a slowing in the pace of the work.

The Corona crisis has not only had a direct impact on Fair Recycled Plastic’s project management and operations. The pandemic has also had a significant effect on social and work life in India and Bangalore. For example, some waste pickers lost their entire income. For this reason, the Melitta Group, together with Cofresco, financially supported the local partner company Saahas Zero Waste so that ‘safety kits’ with food could be distributed to the waste pickers.

Social Business/Cooperation with Yunus Social Business

Social business is a socially oriented form of business. In contrast to donations or charitable projects, which mainly address people’s problems in the short term with money, a social business aims to create a self-financing cycle that solves social or environmental problems in the long term. A business is established with the profits either being invested back into the company or being used to support social projects that help to solve the problem.
The person who came up with this principle is Nobel Prize winner and economist Prof. Muhammad Yunus, who also founded Yunus Social Business GmbH. Together with the Indian company Yunus Social Business Bengaluru Fund Private Limited (YSB), the Melitta Group and Cofresco have founded the social business ‘Vishuddh Recycle Private Limited’ as a joint venture in Bangalore. The company recycles plastics and processes them into granulate. All profits are either ploughed back into the business or benefit two social projects that work to provide better healthcare and additional educational opportunities for the waste pickers and their families.
For more information on the principle of social business, visit yunussb.com.

Prof. Yunus has personally given his wholehearted support to Fair Recycled Plastic and provides operational assistance through the Yunus Social Business Fund Bengaluru Private Limited and Yunus Social Business GmbH, companies the Melitta Group and Cofresco work closely together with. The social business ‘Vishuddh Recycle Pvt. Ltd.’ was founded as a joint venture. Yunus Social Business Fund Bengaluru Private Limited is a co-investor and has veto rights over important operational decisions.

Employees

Initially, about 30 people will work in production in various positions. The number of employees is to be successively increased to more than 50.

Partner companies

We work together with four certified partner companies operating in the local waste management sector:

Saahas Waste Management Private Limited

Hasiru Dala Innovations Private Limited

Waste Ventures India Private Limited

NEPRA Resource Management Private Limited

The partner companies were carefully selected with the help of Yunus Social Business. To ensure that the strict quality requirements regarding working conditions and the materials supplied are met, we conduct regular on-site audits together with TÜV Rheinland. We attach great importance to close relationships with our suppliers. Together with our partner companies, we strive to continuously improve working conditions for the employees.

Waste Pickers

Poor waste disposal in Bangalore is not only a problem for the environment, but also affects the lives of the poorest section of the population. About 15,000 to 20,000 people work as waste pickers in the southern Indian metropolis. So far, only a few of them are employed on a permanent basis. They collect waste products from early in the morning until evening, without the benefit of protective equipment such as gloves or masks. They look through heaps of rubbish or in ditches in the streets for waste that they can sell. Currently they earn a very low income – hardly enough to feed their families. Many of them live in slums directly on the rubbish dumps. Through Fair Recycled Plastic and the cooperation with our partner companies, we want to promote the development of formal structures in the waste sector and create the conditions for a sustainable improvement in the working and living conditions of many waste pickers and their families. This means, among other things, that they receive a fair and regular income and are provided with personal protective equipment.

Fair Recycled Plastic both directly creates jobs in production, ensuring employment with high labour standards and a good and regular income, and indirectly creates new income streams through our partner companies.

Our partner companies will expand the number of their suppliers, e.g., waste pickers, to meet our requirements for plastic waste. Not all plastics are suitable for the production of bin liners. The recyclate must be made of LDPE, Low Density Polyethylene. This is a soft plastic that is mainly used for bags. So far, there is only a small, fluctuating market for this type of plastic in Bangalore. There are few or only very unreliable and inconsistent buyers for LDPE. The fluctuating prices often do not justify the effort of collecting the waste, so that there is little incentive to collect this type of plastic. With Fair Recycled Plastic, a consistent buyer for LDPE is now entering the market, making collection more lucrative in the long term. This means that more waste pickers will have an additional source of income that guarantees a fair purchase price for their product. The transparent value chain that we insist on will also lead to an improvement in working conditions.

We also support two non-profit organisations that work to improve health care and provide additional educational opportunities for the waste pickers and their children.

We can produce about 2,000 tonnes of granulate each year from plastic waste in our recycling company. For this, we would need to hire about 2,000 new employees to collect the waste for us. Hiring that many new employees in India would be beyond our current skills and resources. We have little experience with the local system in Bangalore and do not have the capacity to select, train and supervise 2,000 additional staff.  As a new, European company entering the market the waste pickers may not have the necessary confidence in us. Moreover, we only need LDPE, but waste pickers normally collect different types of plastic waste. Our partner companies have the facilities to separate the waste properly and sell the remaining waste to other customers. We would need to set up a distribution network for this. Therefore, we have decided to work using the selected partner companies as intermediaries.

It would be better if waste did not have to be collected from the streets, but rather that there was a regulated waste disposal system with waste being collected at the source and processed or disposed of professionally. Then there would no longer be a need for waste pickers as trained refuse disposal workers would deal with waste disposal as is the case in European countries. This is of course our long-term goal.
We are contributing to the development of formal structures in the waste sector in Bangalore and helping to provide additional educational opportunities for the children of the waste pickers. We also hope to work with other partners to build and expand similar structures locally and in other regions.
Fair Recycled Plastic is no more and no less than an initial, important step towards improving the lives of waste pickers.

Location

We wanted to get involved where we would have the greatest impact. We chose India and Bangalore for a variety of reasons –

According to a study by the Helmholtz Centre for Environmental Research Leipzig and the Weihenstephan-Triesdorf University of Applied Sciences, about 90 per cent of the plastic waste in the world’s oceans originally comes from ten rivers. Eight of these rivers flow through Asia and two of these rivers, the Ganges and the Indus, flow through India into the ocean. Moreover, India is already one of the most populated countries and this will only increase due to demographic change. This means that the amount of waste continues to increase, making an effective system for waste disposal and processing ever more necessary. About 22 percent of the population of India lives below the poverty line of $1.90 per day. A large proportion of these people work in waste collection. There is a pressing need for improvement in the country and there are no major hurdles for foreign companies that want to start working in India.

We chose Bangalore because it is one of the largest cities in India and one of the largest waste producers in the country. There is also sufficient industrial infrastructure such as a good water and electricity supply. Furthermore, the metropolis is close to the port of Chennai and there is a local Yunus Social Business office there.

We are aware that the granulate has to be transported over long distances. Nevertheless, this makes sense as the eco-balance of the plastic is significantly improved through reuse. The recycled granulate is still significantly more ecological than virgin material and therefore a good alternative for our bin liner production. Another point is that we process LDPE (Low Density Polyethylene). This is a soft plastic that is mainly used for bags. So far, there is only a small, fluctuating market for this type of plastic in Bangalore. There are few or only very unreliable and inconsistent buyers for LDPE. The fluctuating prices often do not justify the effort of collecting the waste, so that there is little incentive to collect this type of plastic. With us, a consistent buyer for LDPE is now entering the market, making collection more lucrative in the long term. This means that these plastics will no longer pollute the environment and more waste pickers will have an additional source of income and are guaranteed a fair purchase price for their product.

Production / Recycling process

The LDPE (Low Density Polyethylene) waste is processed in an industrial building that we converted for this purpose in Bangalore. When it arrives, the material is sorted again to ensure that only pure LDPE materials enter the machine. The sorted plastic is then shredded and cleaned and dried in a washing plant. The water from the plant is recycled and recirculated. The plastic shreds are then heated and filtered in a regranulation plant to remove any remaining residues such as printing inks. At the end of the process, the granulate is packed in so-called big bags.

Our plant can produce up to 2,000 tonnes of granulate each year from LDPE plastic waste.

Products

LDPE (Low Density Polyethylene) is a type of polyethylene (PE) it is a very flexible, low-density material. LDPE is mainly used to make bags and plastic foil. Plastic bottles, for example, are mostly made of PET (polyethylene terephthalate) or PP (polypropylene).

Only polyethylene (PE) is used in Swirl® and handy bag® brand bin liners. LDPE (Low Density Polyethylene) is the type of polyethylene that we have consciously selected. Unlike plastic bottles, which are mainly made of PET, there is only a small, fluctuating market for LDPE in Bangalore so far, with few or only very unreliable and inconsistent buyers. The fluctuating price often does not justify the effort of collecting the waste, so there is little incentive to collect this type of plastic. With us, a constant buyer for LDPE is now entering the market, making collection more lucrative in the long term. This means that these plastics will no longer pollute the environment and more waste pickers will have an additional source of income and are guaranteed a fair purchase price for their product.

Using a single type of material (no mixing of different types of plastic/substances or multi-layer products) also means it is easier to recycle. This allows the high quality to be maintained during the next recycling process.

Social Engagement

Among other things, the profits will benefit two charitable organisations that provide better health care and additional educational opportunities for the waste pickers and their families. We worked closely with our partner Yunus Social Business to select the organisations. We are convinced that this will be a valuable extension of our support for the waste pickers.

One of the two organisations is the Smile Foundation. With the initiative ‘Smile on Wheels’, this Indian NGO provides free primary medical care for waste pickers and their families. They operate mobile clinics that regularly visit the disadvantaged neighbourhoods of Bangalore. The specialised staff not only offer medical support, but also provide information on hygiene and other preventive health care topics. A ‘Smile on Wheels’ van carries out around 15,000 medical examinations per year.

Fair Recycled Plastic also supports the ‘Hasiru Dala Trust’. This local NGO runs educational activities such as community libraries and workshops in the poor areas of Bangalore. The aim is to promote the social, emotional and cognitive growth of children through these alternative forms of tutoring, alongside their school attendance, and help them achieve better educational qualifications. The programme will provide education to several hundred children.
Cofresco has supported these organisations financially from the start of production, even before the social business has generated its planned profits. This means that the waste pickers and their families benefit from the medical and educational services as early as possible.

The van visits each area in a 2-week rhythm. Our financial commitment allows us to select ten places to be visited regularly.

‘Smile on Wheels’ can carry out about 15,000 treatments per year.

Hasiru Dala Trust runs various libraries in Bangalore and conducts a range of workshops with children. We financially support these educational activities, which complement school attendance.
However, due to Corona, the workshops planned for February 2020 had to be cancelled. Instead, a radio platform was set up to enable children to be reached at a distance and have regular access to the educational programme. This programme was originally broadcast during the lockdown (March-May 2020) and will now be continued due to the positive feedback it has received.
We also support Bugury Community Libraries, which specialise in promoting the social, emotional and cognitive growth of children to work towards better school qualifications. These activities and workshops will be continued in 2021. As soon as the schools in Bangalore reopen, educational services such as scholarships will be expanded further.

Plastic/Plastic waste

For many years, we have been researching alternative plastics and more environmentally friendly packaging. We are in regular communication with the scientific community, including through the Cofresco Forum, and we keep in contact with our suppliers. We are constantly testing new approaches and have achieved a number of successes in recent years. For example, we have been able to increase the proportion of recycled materials and have developed foils that are largely made from renewable raw materials. We are actively working to ensure that our products are returned to the circular economy wherever possible. As part of its 100% Circular mission, our subsidiary Cofresco has set itself the goal of having as many products as possible fully participate in the recycling loop by 2025. These products will then be made exclusively from recycled or renewable materials and can be fully recycled or composted after use.

Cofresco is working hard to implement its Mission 100% Circular strategy. Our top priority as a brand manufacturer is that the tried and tested high quality of the products is maintained. Although there is still work to be done, important milestones have already been achieved. One example is Swirl® bin liners, which now consist of 100% recycled plastic. Progress has also been made with the Toppits® brand. In cling film and Zipper® bags as well as freezer and vegetable bags – the proportion of recycled material was increased to 35%  in 2021 and to 70% in 2022. Further milestones are already planned for 2025.