Ahmedabad-based Umasree Texplast has partnered with Brazil’s Packem for setting up a manufacturing plant near Ahmedabad to produce 100 per cent sustainable Flexible Intermediate Bulk Container (FIBC) or Jumbo Bags made of Polyethylene terephthalate (PET) and recycled PET (rPET).

The plant will be set up with an investment of $15 million (appx ₹120 crore).

In the joint venture, Packem Umasree Pvt. Ltd, Umasree will hold 49 per cent equity and Packem will have 51 per cent stake. Packem is said to be the first Brazilian company to produce 100 per cent sustainable FIBC/Jumbo Bags made of PET/PCR (rPET). And the JV Packem Umasree will be the first company in India to start producing FIBC/ Jumbo Bags made from completely recycled PET. rPET/ PCR (Recycled PET) under the concept of Bottle to Bag.

“India is a strategic location to serve the global market and we have been operating in this market since 2005. We have launched a 100 per cent recycled and recyclable product and we felt Packem is a perfect fit with our philosophy of sustainability,” said Umasree’s CEO, Punit Gopalka.

To create 700 jobs

The new production unit to come near Ahmedabad and will create about 700 jobs.

“This new facility in Asia will take Packem to global markets that are already served today by Umasree, in PP bags, especially the USA, Canada and Europe. We have been Umasree’s business partners for over 10 years, and it was this relationship of trust that enabled the Joint Venture to further strengthen this partnership,” said Eduardo Santos Neto, CEO of Packem.

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 per cent 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.

“Our rPET big bag will bring great environmental and social benefits to India, in addition to direct jobs. It is estimated that every metric tonne of recycled plastic will create three local jobs for the collection and recycling industry,” said Marcos Spitzner Filho, CFO of Packem.

The JV was assisted by MNSS Advisors, as the financial, legal and tax advisor to Umasree, and by law firm Trilegal, which handled Packem’s matters.

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