Chemco Plastic Industries is planning to raise around Rs 1,500 crore through an initial public offering, according to sources cited by Moneycontrol. The proposed Chemco IPO is expected to include both fresh shares and an offer for sale, giving the packaging manufacturer access to public market capital.
The fresh issue proceeds are expected to be used for capital expenditure and debt reduction. Investment banks Equirus, Axis Capital and 360ONE are reportedly working on the proposed IPO, although the company had not responded to Moneycontrol’s queries at the time of publication.
Chemco manufactures rigid and flexible plastic packaging products including PET preforms, bottles, jars, containers, caps, shrink films and stretch wraps. Its packaging products are supplied across sectors such as beverages, food, personal care, healthcare, confectionery, lubricants and household products.
Chemco Business, Clients And Financial Performance
The company has a broad customer base that includes Coca Cola, PepsiCo and Bisleri, along with Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson and Danone. This gives the Chemco packaging business exposure across major consumer and FMCG categories.
Founded in 1996 by polymer engineer Ramawatar Saraogi, Chemco has expanded beyond beverage packaging into areas including baby care products, technical textiles, geotextiles, feminine hygiene products and houseware. The company is led by managing director Vaibhav Saraogi and operates across India and West Asia.
Chemco claims a presence across 23 locations in India and West Asia and processes more than 1.25 lakh tonnes of plastic polymers annually. Its manufacturing footprint includes Silvassa, Vadodara, Daman, Halol and Sanand in India, along with facilities in the UAE, Bahrain and Saudi Arabia.
The Chemco Group reported operating income of Rs 939 crore in FY25, compared with Rs 768 crore in FY24, marking a 22% increase. Profit after tax rose to Rs 61.9 crore from Rs 52.3 crore, while operating margins remained in the 16 to 18% range, according to Crisil Ratings.
The proposed Chemco IPO comes as investor interest in manufacturing and industrial companies remains strong. Recent issues from Tempsens Instruments, Hy Tech Engineers and Lumino Industries saw substantial subscription demand, with Lumino Industries listing at a premium of more than 30% to its issue price on September 3.
FAQs
- What is Chemco Plastic Industries?
Chemco Plastic Industries is a packaging company that manufactures products such as PET preforms, bottles, jars, containers, caps and films.
- What is the Chemco Plastic Industries IPO size?
Chemco Plastic Industries is reportedly planning to raise around Rs 1,500 crore through its IPO.
- Why is Chemco Plastic Industries launching an IPO?
The company plans to use proceeds from the fresh issue mainly for capital expenditure and debt reduction.
- Which companies does Chemco supply packaging to?
Chemco supplies packaging products to major companies including Coca Cola, PepsiCo, Bisleri, Nestlé, Dabur and Britannia.
