INDIA – Umasree Texplast has partnered with Brazilian company Packem to establish a pioneering manufacturing facility in Gujarat.
This venture aims to produce Flexible Intermediate Bulk Containers (FIBC) or Jumbo Bags exclusively from recycled PET (rPET)/Post-Consumer Resin (PCR), aligning with the sustainable “waste to wealth” concept.
The joint venture, Packem Umasree Pvt. Ltd., represents a significant investment of Rs 300 crore (US$35.93m) and is a strategic step towards supporting the circular economy and the ‘Make in India’ initiative.
Under this collaboration, Umasree holds a 49% equity stake. In contrast, Packem, which has already succeeded in Brazil as the first to produce 100% sustainable FIBC/Jumbo Bags from PET/PCR, holds a 51% stake.
This partnership marks the introduction of the “Bottle to Bag” concept in India, transforming used PET bottles into fully sustainable bulk packaging solutions.
Punit Gopalka, CEO of Umasree, expressed enthusiasm about the joint venture: “Choosing Packem as our partner was a strategic decision, driven by their youthful energy and forward-thinking vision.
“Their commitment to sustainability matches ours, making them the ideal partner to help us bring a 100% recycled and recyclable product to the global market from our strategic base in India.”
The new facility near Ahmedabad is expected to create significant employment opportunities, with approximately 700 direct and 1200 indirect jobs anticipated.
It positions India to enhance self-reliance and establish itself as a key exporter in the global FIBC market.
Eduardo Santos Neto, CEO of Packem, emphasized the strength of the partnership: “Our decade-long business relationship with Umasree has fostered a deep trust, paving the way for this joint venture that will now enable us to reach global markets, including the USA, Canada, and Europe, where Umasree has been a prominent player in polypropylene bags.”
The venture also promises substantial environmental and social benefits. Marcos Spitzner Filho, Packem’s CFO, highlighted the positive impact: “Our rPET big bags will not only help reduce oceanic and terrestrial pollution by creating a local market for post-consumer PET bottles but are expected to boost local employment in the collection and recycling sectors significantly.”
The initiative is set to revolutionize the packaging industry by reintroducing used big bags into the production cycle, fostering an actual circular economy, and reducing carbon footprints.
The bags, known for their durability, resistance to various environmental factors, and excellent performance across a wide temperature range after their lifecycle, can be fully recycled and repurposed.
The production process will utilize specialized technology from Starlinger, an Austrian company renowned globally for manufacturing raffia plastic packaging machines and recycling equipment for plastics, ensuring high-performance and sustainable packaging solutions.
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