In a significant move poised to redefine sustainable packaging within India and beyond, two industry giants, Chemco Group and Kandoi Group of Industries, have announced a groundbreaking joint venture. The collaboration entails a substantial investment of Rs. 450 crore to establish two state-of-the-art, fully integrated greenfield manufacturing facilities in Flexible Intermediate Bulk Container (FIBC). These facilities will be dedicated to the production of high-performance Flexible Intermediate Bulk Container (FIBC) bags entirely from recycled Polyethylene Terephthalate (rPET).

This strategic alliance between Chemco Group, a leading PET converter in India, and Kandoi Group, a prominent player in technical textiles, marks a pivotal step towards fostering a circular economy within the nation. The upcoming manufacturing plants are meticulously designed to implement a comprehensive closed-loop system. This encompasses the entire lifecycle, starting from the collection and meticulous washing of post-consumer PET bottles to advanced tape extrusion, precision weaving, and the final fabrication of the FIBC bags. This integrated approach guarantees complete traceability of materials, ensures consistent product quality, and significantly minimizes the environmental footprint associated with industrial packaging.

The scale of the initiative is ambitious, with the facilities engineered to recycle over 10 million PET bottles daily, translating to an impressive 3.6 billion bottles annually. Demonstrating a strong commitment to environmental sustainability, the plants will operate entirely on renewable energy sources. The resulting rPET-based FIBC bags will offer a robust and low-carbon alternative to conventional polypropylene and polyethylene packaging solutions currently prevalent in the market.

Commercial production at the new facilities is anticipated to commence by the end of 2025.

Ram Saraogi, Chairman of Chemco Group, articulated the vision behind this collaboration, stating, "This joint venture is a concrete step towards realizing a truly circular economy, leveraging India’s inherent strengths. By transforming what is often considered waste – everyday PET bottles – into high-performance industrial packaging, our aim is to generate value not only for businesses but also for our communities and the environment. We aspire to position India, particularly its industrial heartlands, as a global leader in sustainable manufacturing, where innovation, inclusivity, and positive impact are intrinsically linked."

Echoing this sentiment, Niranjan Agarwal, Managing Director of Kandoi Group of Industries, emphasized the synergy between the two organizations. "This partnership unites two industry leaders possessing deep technical expertise and a shared unwavering commitment to circularity. We are excited to establish a new benchmark in the realm of high-performance, export-ready packaging solutions that are.