Chemco & Kandoi Group’s ₹450 Crore Green Initiative
In a major push towards sustainable industrial packaging, Chemco 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.