Analysis of Circular Economy Practices in Beverages Industry: Case Study on Sula Vineyards Limited

Abstract

Human development has led to increase in consumption, surge in material extraction and usage. The World Bank Report, 2022 titled ‘Policies from Europe's Circular Economy Transition’, states that by 2050, the demandis expected to double. Production of goods and services leads to nearly half of the global greenhouse emissions. Circular economy is a paradigm shift from the linear economy in which a product, component or material is made, used and finally disposed of with the underlying principle of sharing, renting and recycling. The material is not destroyed but used for making other products over and over again. To become a leading economic power, India is expected to increase growth of its manufacturing sector. According to the report, ‘India's Tryst with Circular Economy’ 2022, India has experienced an increase in material consumption by over 6 times from 1.18 billion tons to 7 billion tons between 1970-2015, which is expected to grow to 14.2 billion tons by 2030 with growth in both GDP and population. With increase in the growth of the economy, businesses would need to consciously adopt circular economy practices, innovate and apply them in all sectors of the economy so that the limited resources available are optimized. Circular Economy in the food and beverages industry aims to redesign the economy from a linear state to a circular one by using the waste of one plant as a fodder for the other. This brings higher economic benefits, reduces wastage of resources and detrimental environmental impact and helps to recover organic materials with nutrients. In addition, circular practicesresult in reduction of use of fossil fuels, better mineral and water usage, reduction of pollution, re-use of bio-waste, reduction of land-take and restoration of ecosystems, use of biodegradable and recyclable packaging. This study examines the circular economy business models adopted by Indian companies, identifies the Government and Industry initiatives that support adoption of circular economy in India. Further, it analyses circular practices in food and beverages industry with a comprehensive analysis of circular practices at Sula Vineyards Limited. Sula Vineyards is a member of IWCA where UN and its member wineries are committed to Net Zero Emission by 2050. The company is recognized for its contribution and growth in a responsible manner. The primary data and secondary data collected on circular economy practices at Sula Vineyards Limited has been analysed using descriptive statistics. The variables analysed include renewable energy generation, shift in pattern of consumption, water conservation, waste water management, utilization of by-products like carbon dioxide generated in the fermentation process as an inert gas, local procurement of bottles and recycling on site.The study evaluates the Government and Industry policies and circular economy framework using the PESTEL Analysis Framework. To analyse the circular practices at Sula Vineyards Limited the SWOC Analysis Framework has been used. The 5 different circular business models namely circular supplies, resource recovery, product life extension, sharing platforms and product as a service have been usedto understand the circular practices at Sula Vineyards Limited.