Chemco & Kandoi Launch ₹450 Crore rPET FIBC Plants in Gujarat for Sustainable Packaging.

Chemco & Kandoi Group’s ₹450 Crore Green Initiative

In a major push towards sustainable industrial packagingChemco Group (a leader in PET conversion) and Kandoi Group of Industries (a pioneer in technical textiles) have formed a joint venture to establish two advanced manufacturing plants in Vapi and Dahej, Gujarat. With a ₹450 crore investment, these facilities will produce 100% recycled PET (rPET) FIBC (Flexible Intermediate Bulk Container) bags, setting a new benchmark for eco-friendly industrial packaging.

Closed-Loop System: From Waste to High-Performance Packaging

The plants will adopt a fully integrated closed-loop system, handling:
✔ PET bottle collection & washing
✔ Tape extrusion & weaving
✔ Final FIBC bag production

This ensures:
✅ High-quality, traceable rPET materials
✅ Minimal carbon footprint
✅ Stronger alternative to polypropylene/polyethylene bags

Massive Environmental Impact

The facilities will recycle:
🔹 10 million PET bottles daily (3.6 billion annually)
🔹 Run entirely on renewable energy
🔹 Reduce plastic waste in landfills & oceans

Leadership Insights

Ram Saraogi, Chairman of Chemco Group, said:

“This venture is a step towards a circular economy, transforming PET waste into durable industrial packaging. We aim to make India a global hub for sustainable manufacturing.”

Niranjan Agarwal, MD of Kandoi Group, added:

“By combining our expertise, we’re setting a new standard for high-performance, export-ready rPET packaging.”

Social & Economic Benefits

  • 2,500+ direct & indirect jobs in collection, processing, and manufacturing
  • Formalizing India’s informal waste sector via partnerships with ULBs & municipal corporations
  • Better wages & working conditions for waste collectors

Compliance & Global Market Potential

✔ Meets India’s EPR (Extended Producer Responsibility) norms
✔ Aligns with global ESG standards
✔ Scalable solution for sustainable industrial packaging
✔ Export potential to position India as a leader in green FIBC bags

Production Timeline

  • Commercial operations to begin by late 2025
  • Phased expansion planned for higher capacity & export growth

Why This Matters

For Businesses:

✔ Low-carbon, compliant packaging solution
✔ Traceable & high-strength rPET FIBC bags
✔ Reduced dependency on virgin plastics

For the Environment:

✔ Massive PET waste reduction
✔ Renewable energy-powered manufacturing
✔ Supports circular economy goals

For Workers & Local Economy:

✔ Job creation in waste management & manufacturing
✔ Formalization of informal waste pickers
✔ Boost to Gujarat’s industrial growth


About the Companies

Chemco Group

  • Leading PET processing company in India
  • Specializes in sustainable packaging, closures & technical textiles
  • Strong focus on innovation in plastic recycling

Kandoi Group

  • India’s top technical textiles manufacturer
  • Expertise in FIBC bags, geotextiles & raffia materials
  • Known for large-scale, high-quality production

The Future of Sustainable Packaging

This joint venture reinforces India’s commitment to green manufacturing and positions the country as a global supplier of eco-friendly industrial packaging solutions. With strict ESG norms driving demand, rPET FIBC bags could soon become the industry standard for bulk packaging.

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