In a significant move towards sustainable packaging, Chemco Group, a major player in PET conversion, and Kandoi Group of Industries, known for its expertise in technical textiles, have entered into a joint venture to set up two advanced manufacturing plants in Vapi and Dahej, Gujarat. The ₹450 crore investment will focus on producing FIBC (Flexible Intermediate Bulk Container) bags made entirely from recycled PET (rPET).
The new facilities will implement a closed-loop system that handles everything from collecting and washing PET bottles to tape extrusion, weaving, and final bag production. This approach ensures high-quality, traceable products with minimal environmental impact. The plants aim to recycle over 10 million PET bottles daily, or about 3.6 billion annually, while running entirely on renewable energy. The initiative will provide a stronger, low-carbon alternative to traditional polypropylene and polyethylene packaging.
Ram Saraogi, Chairman of Chemco Group, stated, “This venture is a step forward in creating a circular economy built on India’s strengths. We aim to transform everyday PET waste into durable industrial packaging, benefiting businesses, communities, and the environment. Our goal is to position India, particularly Bharat’s industrial regions, as a global hub for sustainable manufacturing, where innovation and impact go hand in hand.”
Niranjan Agarwal, Managing Director of Kandoi Group, added, “This collaboration combines the expertise of two industry leaders committed to circularity. We’re excited to set a new standard for high-performance, export-ready packaging made entirely from recycled PET.”
In addition to its environmental objectives, the project is designed to promote social equity, generating over 2,500 direct and indirect jobs in areas such as collection, processing, logistics, and manufacturing. The initiative also aims to formalize India’s informal waste collection sector by partnering with Urban Local Bodies (ULBs) and municipal corporations, offering stable employment, better working conditions, and integration into a more efficient waste management system.
The rPET-based FIBC bags will comply with India’s Extended Producer Responsibility (EPR) guidelines and global ESG standards. The joint venture’s end-to-end control over sourcing, recycling, and production provides a scalable solution for sustainable, compliant industrial packaging with reliable recycled content and traceable supply chains. Commercial production is scheduled to begin by the end of 2025, with plans for phased capacity expansion and exploration of export markets to make India a leading supplier of sustainable industrial packaging solutions.
Chemco Group is a leading PET processing company in India, recognized for its expertise in advanced packaging, closures, and technical textile solutions. The group is committed to innovation in sustainable plastic technologies and operates across various industries with a strong manufacturing presence.
Kandoi Group is India’s foremost producer of technical textiles for packaging, with deep experience in FIBC bags, geotextiles, and raffia-based materials. Known for its large-scale operations, consistent quality, and international reputation, the group brings significant strength to the joint venture.
