Umasree Texplast partners with Packem to manufacture eco-friendly bags by using rPET

With an investment of $15 million (approx. Rs 120 crore) for a new plant in Gujarat 

Ahmedabad-based Umasree Texplast is partnering with Brazil’s Packem for setting up a plant near Ahmedabad to produce 100% sustainable FIBC (Flexible Intermediate Bulk Container) /jumbo bags made of recycled or rPET.

Umasree holds a 49% equity in Packem Umasree, the joint venture (JV), and Packem, which recently became the first Brazilian company to produce 100% sustainable FIBC/jumbo bags made from Post-Consumer Recycled (reprocessed) or PCR plastic, will hold 51%. Packem Umasree will be the first company in India to start producing FIBC/ jumbo bags made from 100% rPET/ PCR with the concept of Bottle to Bag.

The new production unit to come near Ahmedabad is expected to create about 700 jobs.  The plant will help India become self-reliant as well as emerge as a hub for exports of the bags.

The global FIBC market is led by five countries India, China, Vietnam, Turkey, and Mexico. In 2021, these countries exported 250 million units, with India accounting for 50% of that volume. At least two per cent of the global FIBC / jumbo bag market will be able to immediately replace the polypropylene product with recycled PET/PCR bags and this replacement will increase over the years.

“It is estimated that every metric tonne of recycled plastic will create three local jobs for the collection and recycling industry. In addition, our project will create local demand for post-consumer PET bottles, with a positive impact on oceans, rivers and the environment in general,” pointed out Marcos Spitzner Filho, CFO of Packem.

The special technology for the production of high-performance fabrics from recycled rPET/PCR is exclusive to the Austrian Company Starlinger, the world leader in the production of machines for raffia plastic packaging and recycling equipment for plastics.