Chemco, Kandoi launch US$54.2M joint venture to manufacture rPET-based FIBC bags in Gujarat

INDIA – Chemco Group, one of India’s largest PET converters, and Kandoi Group of Industries, a leader in technical textiles, have formed a strategic joint venture to establish two fully integrated greenfield facilities in Vapi and Dahej, Gujarat.

With a combined investment of ₹450 crore (US$54.2 million), the venture will focus on the production of Flexible Intermediate Bulk Container (FIBC) bags made entirely from recycled PET (rPET).

The new plants will be among the first in India to implement a closed-loop production system—spanning PET bottle collection, washing, tape extrusion, weaving, and bag fabrication—ensuring complete traceability, consistent quality, and significant reductions in environmental impact.

Designed to recycle more than 10 million PET bottles per day (around 3.6 billion annually), the facilities will run entirely on renewable energy, delivering a high-strength, low-carbon alternative to conventional polypropylene and polyethylene packaging.

“This joint venture is a step toward building a circular economy rooted in India’s unique strengths,” said Ram Saraogi, Chairman of Chemco Group.

“By transforming everyday PET waste into high-performance industrial packaging, we aim to create value not just for businesses, but for communities and the environment. Our vision is to position India’s industrial heartlands as a global hub for sustainable manufacturing—where innovation, inclusion, and impact go hand in hand.”

Niranjan Agarwal, Managing Director of Kandoi Group, added, “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.”

Beyond environmental innovation, the project is grounded in social equity. It is expected to generate over 2,500 direct and indirect jobs across collection, processing, logistics, and manufacturing.

In collaboration with Urban Local Bodies (ULBs) and municipal corporations, the initiative also seeks to formalize India’s informal waste collector networks, offering stable livelihoods, better working conditions, and integration into a more efficient and transparent waste management ecosystem.

The rPET-based FIBC bags are fully aligned with India’s Extended Producer Responsibility (EPR) framework and international ESG (Environmental, Social, and Governance) standards.

With full control over the sourcing, recycling, and fabrication process, the joint venture offers a scalable, compliant solution for industrial packaging—featuring reliable recycled content and traceable supply chains.

Commercial production is slated to begin by the end of 2025, with both Chemco and Kandoi planning to scale capacity in phases and explore export markets to establish India as a global supplier of sustainable, high-performance packaging solutions.

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