Umasree Texplast enters into JV with Brazilian firm Packem to make FIBC/Jumbo bags from rPET/PCR
Ahmedabad, November 7, 2022
Ahmedabad-based Umasree Texplast has entered into a joint venture with Brazilian firm Packem for setting up a plant near here to produce 100% sustainable FIBC (Flexible Intermediate Bulk Container)/Jumbo Bags made of PET/PCR (rPET).
The project, to be set up with an investment of about Rs 120 crore, will support the circular economy and the Make in India programme, a press release from the company said.
"Umasree Texplast has taken the lead in adopting mission Life, which encourages us to be a trustee of the environment as aptly conveyed by Prime Minister Narendrabhai Modi," the release said.
Umasree will hold 49% equity in Packem Umasree Pvt. Ltd., the JV, and Packem, which recently became the first Brazilian company to produce 100% sustainable FIBC/Jumbo Bags made of PET/PCR (rPET), will hold 51%.
Packem Umasree will be the first company in India to start producing FIBC/ Jumbo Bags made from 100% rPET/ PCR (Recycled PET) with the concept of Bottle to Bag.
“We chose to form the joint venture with Packem because it is a young and energetic company with a vision for the future. 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% recycled and recyclable product and we felt Packem is a perfect fit with our philosophy of sustainability,” said Umasree’s CEO, Punit Gopalka.
The new production unit 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 release said.
“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 strengthening 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% of that volume. At least two percent 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. 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 release said the rPET/PCR to FIBC/Jumbo bags is the greatest innovation of recent years in the segment of packaging for agriculture and will help in developing a circular economy. The first 100% bag-to-bag projects in the world will see big bags used in the field processed and recycled to be made into big bags again. The company will reuse 100% of the rPET FIBC / Jumbo Bags and help reduce virgin plastic from agribusiness and industry.
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.
Umasree, which has been at the forefront of providing customized big bag solutions for over 15 years, produces 3.50 million units of big bags per year.
Packem produces 6.0 million units of big bags per year.