Chemco and Kandoi form ₹450 crore joint venture to launch rPET–based FIBC bag manufacturing facilities in Gujarat
Mumbai, 15th May 2025 – In a landmark collaboration aimed at redefining sustainable packaging in India, Chemco Group, one of the country’s largest PET converters, and Kandoi Group of Industries, a leader in technical textiles, have announced a strategic joint venture to build two fully integrated greenfield manufacturing facilities in Vapi and Dahej, Gujarat. With a total investment of ₹450 crore, the initiative will focus on producing FIBC (Flexible Intermediate Bulk Container) bags entirely from recycled PET (rPET).
The upcoming facilities will offer a closed-loop system from PET bottle collection and washing to tape extrusion, weaving, and final bag fabrication ensuring full traceability, consistent quality, and reduced environmental impact. Designed to recycle over 10 million PET bottles per day (approximately 3.6 billion annually), the plants will operate entirely on renewable energy and offer a high-strength, low-carbon alternative to traditional polypropylene and polyethylene packaging.
“This joint venture is a step toward building a circular economy rooted in India’s unique strengths. By transforming everyday PET waste into high-performance industrial packaging, we want to create value not just for businesses, but for communities and the environment. Our vision is to establish India, particularly Bharat’s industrial heartlands, as a global hub for sustainable manufacturing, where innovation, inclusion, and impact go hand in hand,” said Ram Saraogi, Chairman, Chemco Group.
“This partnership brings together two industry leaders with deep technical expertise and a shared commitment to circularity. We’re excited to set a new benchmark in high-performance, export-ready packaging made entirely from recycled PET,” said Niranjan Agarwal, Managing Director, Kandoi Group of Industries.
Beyond its environmental goals, the venture is built on a strong foundation of social equity. It is expected to generate over 2,500 direct and indirect jobs across collection, processing, logistics, and manufacturing. By partnering with Urban Local Bodies (ULBs) and municipal corporations, the initiative aims to formalize India’s informal waste collector network offering steady livelihoods, improved working conditions, and integration into a more transparent and efficient waste ecosystem.
The rPET–based FIBC bags are fully aligned with India’s Extended Producer Responsibility (EPR) framework and global ESG expectations. With end-to-end control over sourcing, recycling, and fabrication, the joint venture offers a scalable model for sustainable, compliant industrial packaging with reliable recycled content and traceable supply chains.
Commercial production is expected to begin by the end of 2025. Both Chemco Group and Kandoi Group plan to scale capacity in phases and explore export opportunities to position India as a global supplier of sustainable, industrial packaging solutions.