Chemco Group Launches ₹125 Crore Food-Grade rPET Facility to Drive Circular Plastics Economy

Sanand plant to recycle over 1 billion PET bottles annually, delivering food-grade rPET for circular packaging.

Chemco Group, one of India's leading plastic packaging manufacturers, has commissioned a state-of-the-art food-grade rPET recycling facility in Sanand, Gujarat. This launch marks a major milestone in the country's transition towards a circular plastics economy. The project represents a capital investment of approximately Rs 125 crore and positions Chemco among a select group of Indian companies offering true end-to-end bottle-to-bottle recycling at industrial scale.

Bottle-to-Bottle Recycling: Scaling Domestic rPET Production

The facility is designed to recycle over 1 billion post-consumer PET bottles annually, converting them back into high-quality, food-grade recycled PET (rPET) suitable for direct food and beverage packaging applications. With this commissioning, Chemco significantly strengthens India's domestic capability to replace virgin plastic with certified recycled material while maintaining stringent quality and safety standards.

Regulatory Compliance: US FDA, EFSA, and FSSAI Approved

Located in the industrial hub of Sanand, the plant has been developed to meet global regulatory expectations. The recycled PET produced at the facility is US FDA and EFSA approved, and fully compliant with FSSAI requirements for food-contact applications in India. In addition, the operations adhere to all applicable Bureau of Indian Standards (BIS) governing plastic recycling and recycled PET materials, reinforcing Chemco's commitment to regulatory excellence and product integrity.

"This facility represents a strategic shift in how Chemco approaches sustainability," said Mr. Vaibhav Saraogi, Managing Director, Chemco Group. "Rather than treating recycling as an external dependency, we have built a fully integrated bottle-to-bottle ecosystem that gives our customers confidence in supply security, traceability, and compliance. This is not just an investment in infrastructure; it is an investment in the future of responsible packaging."

Empowering Brands to Meet EPR and Sustainability Mandates

The commissioning of this plant comes at a time when global brands and regulators are intensifying their focus on recycled content, carbon reduction, and circularity. By establishing in-house recycling capabilities, Chemco enables its brand partners to meet recycled-content mandates, extended producer responsibility (EPR) obligations, and sustainability commitments without compromising on performance or food safety.

The Sanand facility has been developed as a closed-loop operation, ensuring complete control across the recycling value chain. This integrated approach enhances traceability, reduces dependency on external suppliers, and lowers the environmental impact associated with long logistics routes. The scale of operations also allows Chemco to deliver consistent quality and volumes required by large beverage, FMCG, and food brands.

Strengthening Gujarat’s Position as a Sustainability Hub

Beyond environmental impact, the project delivers meaningful industrial and regional benefits. The facility generates skilled employment, strengthens Gujarat's position as a manufacturing and sustainability hub, and contributes to India's broader objectives of waste reduction, resource efficiency, and circular manufacturing.

Chemco Group brings over three decades of experience in PET packaging to this initiative, supplying rigid and flexible packaging solutions to leading domestic and international brands. The addition of large-scale rPET recycling further consolidates Chemco's position as a long-term partner for companies seeking credible, compliant, and scalable sustainable packaging solutions.

As demand for food-grade recycled materials continues to rise across global markets, Chemco plans to leverage this platform to support higher recycled-content applications and future capacity expansions. The company's approach remains firmly focused on combining industrial scale with regulatory discipline and environmental responsibility.

With the commissioning of its Sanand rPET facility, Chemco Group takes a decisive step forward in closing the loop on PET packaging, transforming waste into a valuable resource and reinforcing its role as a leader in India's circular plastics ecosystem.