Ahmedabad: Chemco Group, a plastic packaging company, has entered into a joint venture with Kandoi Group of Industries. The partnership will establish two fully integrated greenfield manufacturing units in Vapi and Dahej, Gujarat, with a total investment of ₹450 crore. The facilities will produce FIBC (Flexible Intermediate Bulk Container) bags made entirely from recycled PET (rPET).

These plants will feature a comprehensive closed-loop system, covering every stage—from PET bottle collection and washing to tape extrusion, weaving, and bag fabrication. Designed to process over 10 million PET bottles daily (around 3.6 billion annually), the plants will run entirely on renewable energy and offer a durable, low-carbon alternative to conventional plastic packaging.

“By transforming everyday PET waste into high-performance industrial packaging, we want to create value not just for businesses, but for communities and the environment,” said Ram Saraogi, Chairman of Chemco Group.

Niranjan Agarwal, Managing Director of Kandoi Group of Industries, added, “This partnership brings together two industry leaders with deep technical expertise and a shared commitment to circularity.”

Apart from its environmental focus, the project also carries a strong social dimension. It is expected to generate over 2,500 direct and indirect jobs across the value chain—from collection and processing to logistics and production, the company announced.

Commercial production is slated to begin by the end of 2025, with phased capacity expansion and plans to tap into global export markets. DeshGujarat