Chemco and Kandoi launch INR 450-crore JV for rPET project

Chemco Group, one of India's largest PET converters, and Kandoi Group of Industries, renowned for its expertise in technical textiles, have announced a joint venture.  The INR 450-crore investment will focus on producing FIBC (Flexible Intermediate Bulk Container) bags made entirely from recycled PET (rPET) at two fully integrated greenfield manufacturing facilities in Vapi and Dahej (Gujarat).

The two facilities in Vapi and Dahej will offer a closed-loop system from PET bottle collection and washing to tape extrusion, weaving, and final bag fabrication. The aim is to ensure traceability, quality, and reduced environmental impact. The press note issued by both companies said, "Designed to recycle over 10 million PET bottles per day (approximately 3.6 billion annually), the plants will operate entirely on renewable energy." Also it will offer a high-strength, low-carbon alternative to traditional polypropylene and polyethylene packaging.

Ram Saraogi, the chairman at Chemco Group said, "This joint venture is a step toward building a circular economy rooted in India’s unique strengths." He added, "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." The vision of both companies is to establish India, particularly industrial heartlands, as a global hub for sustainable manufacturing.

Niranjan Agarwal, the managing director of Kandoi Group of Industries said, "This partnership brings together two industry leaders with deep technical expertise and a shared commitment to circularity." Agarwal said, "We’re excited to set a new benchmark in high-performance, export-ready packaging made entirely from recycled PET."

The rPET-based FIBC bags are fully aligned with India’s Extended Producer Responsibility (EPR) framework and global ESG expectations. With end-to-end control over sourcing, recycling, and fabrication, the joint venture offers a scalable model for sustainable, compliant industrial packaging with reliable recycled content and traceable supply chains.

Commercial production will begin by the end of 2025. Both Chemco Group and Kandoi Group plan to scale capacity in phases and explore export opportunities to position India as a global supplier of sustainable, industrial packaging solutions.