Chemco commissions food-grade rPET recycling plant in Gujarat

INDIA – Chemco Group, an Indian plastic packaging manufacturer, has commissioned a new food-grade recycled PET (rPET) recycling facility in Gujarat, marking a significant step in the company’s efforts to build a fully integrated, circular packaging ecosystem.

The Sanand-based plant represents an investment of approximately ₹1.25bn (US$13.7m) and is designed to process more than one billion post-consumer PET bottles annually.

The recovered material is converted into food-grade rPET suitable for direct use in food and beverage packaging applications, supporting brand owners seeking to increase recycled content without compromising safety or performance.

Chemco said the facility has been developed to meet international quality and regulatory standards.

The rPET produced at the site has received approvals from the US Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA), and complies with food-contact plastic regulations set by India’s Food Safety and Standards Authority of India (FSSAI).

Operations also adhere to Bureau of Indian Standards guidelines governing recycled materials.

By bringing recycling in-house, Chemco aims to help brand partners comply with recycled-content mandates, extended producer responsibility (EPR) obligations and broader sustainability targets.

The company operates the plant as a closed-loop system, allowing full oversight of bottle collection, processing and output quality while reducing reliance on external recyclers and long-distance logistics.

According to Chemco, this integrated approach is intended to ensure consistent supply volumes and material quality for large customers in the beverage, FMCG and food sectors, where demand for certified food-grade rPET continues to rise.

“This facility represents a strategic shift in how Chemco approaches sustainability,” said managing director Vaibhav Saraogi.

“Rather than treating recycling as an external dependency, we have built a fully integrated bottle-to-bottle ecosystem that gives our customers confidence in supply security, traceability and compliance.”

The investment comes as India’s packaging and beverage sectors accelerate adoption of recycled plastics, driven by tighter EPR rules, voluntary brand commitments and growing consumer scrutiny around plastic waste.

Several major brand owners have publicly committed to increasing rPET usage in bottles and flexible packaging over the coming years, placing pressure on local supply chains to scale food-grade recycling capacity.

In parallel with the Sanand project, Chemco is expanding its circular plastics footprint through a joint venture formed in 2025 with Kandoi Group of Industries.

The partnership is establishing two greenfield facilities in Vapi and Dahej, Gujarat, with a combined investment of ₹450 crore (US$54.2m), focused on producing flexible intermediate bulk container (FIBC) bags made entirely from rPET.

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