Chemco Group, one of India’s leading PET converters, has partnered with technical textile major Kandoi Group to establish two state-of-the-art greenfield facilities in Vapi and Dahej, Gujarat. This strategic joint venture, with a combined investment of ₹450 crore, marks a bold step toward large-scale, sustainable industrial packaging using 100% recycled PET (rPET).
Building India’s First Closed-Loop rPET FIBC Ecosystem
The upcoming facilities will be among the first in India to implement a fully closed-loop production system for Flexible Intermediate Bulk Containers (FIBCs). The end-to-end process will include PET bottle collection, washing, tape extrusion, weaving, and final bag fabrication. This ensures total traceability, consistent product quality, and a dramatically lower environmental footprint.
Scaling Circular Economy with Massive Recycling Capacity
Designed to recycle over 10 million PET bottles daily (3.6 billion annually), the plants will run entirely on renewable energy. The resulting FIBC bags will serve as a high-strength, low-carbon alternative to conventional polypropylene and polyethylene packaging, directly contributing to India’s circular economy goals.
“This joint venture is a step toward building a circular economy rooted in India’s unique strengths,” said Ram Saraogi, Chairman of Chemco Group. “We transform everyday PET waste into high-performance industrial packaging. Our goal is to create value not just for businesses, but also for communities and the environment.”
Setting New Benchmarks in Sustainable Manufacturing
Niranjan Agarwal, Managing Director of Kandoi Group, said, “This collaboration unites two industry leaders with complementary strengths and a shared vision of circularity. We’re proud to set a new global benchmark for export-ready industrial packaging made entirely from recycled PET.”
The venture has end-to-end control over raw material sourcing, recycling, and fabrication. It ensures traceable supply chains and reliable recycled content. This approach is fully aligned with India’s Extended Producer Responsibility (EPR) framework and global ESG (Environmental, Social, and Governance) standards.
Driving Social Impact and Inclusive Growth
Beyond environmental gains, the project promotes social inclusion. It will create over 2,500 direct and indirect jobs in collection, processing, logistics, and manufacturing. The venture is partnering with Urban Local Bodies (ULBs) and municipal corporations. It aims to formalize informal waste collector networks, offering improved livelihoods and better integration into a transparent waste ecosystem.
Commercial Production by 2025, Global Markets in Focus
As reported by sustainabilitymea.com, commercial production is scheduled for late 2025. Chemco and Kandoi plan to scale capacity in phases and tap into export markets. This will position India as a global hub for sustainable, high-performance industrial packaging.
