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City-based Umasree Texplast takes the lead in adopting mission
Life, which encourages us to be a trustee of the environment as aptly conveyed by Prime Minister
Shri Narendrabhai Modi, by 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 PET/PCR (rPET).
Umasree holds a 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 to come near Ahmedabad which will produce 100 % sustainable FIBC /
Jumbo Bags 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.
“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
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.
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“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 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.
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.
