Mumbai — PET preform and container manufacturer Chemco Group is investing in two new sites in India to meet demand from multinational customers like Coca-Cola Co.
Chemco is building factories in Gujarat state, in the cities of Sanand and Halol.
"We are investing about INR 2 billion ($29.1 million) in both sites. Sanand would be first to be operational by the end of 2018 in December, while Halol will follow few months later in 2019," said Amitabh Agrawal, executive director of Chemco Plastic Industries Pvt. Ltd.
"Sanand is emerging as the next plastic hub in the state and some of our key customers like Coke are investing in Sanand," Agrawal said, in an interview at the Injection, Blow, Roto & PET Molding International Summit 2018 in Mumbai in early July.
He also noted that Sanand is the site of the Gujarat government's second industrial park dedicated to the plastics industry.
Gujarat produces about 50 percent of the country's polymers and is estimated to be home to more than 10,000 micro, small and medium-sized enterprises engaged processing and manufacturing of plastics.
The Sanand plant will produce PET containers and preforms for rigid packaging as well as films and sheets for flexible packaging.
He said PET packaging has potential in India.
"India's PET consumption is merely 5 [kilograms] per capita annually, whereas, global average is ranging in 13-15 kg," he said. "We are still at one-third of the global consumption levels. Therefore, the sector offers healthy growth potential. Overall the rigid packaging industry is growing at 15 percent annually."
The company has four other factories in India currently, along with facilities in Bahrain and the United Arab Emirates.