Coca-Cola, PepsiCo Supplier Chemco Plastic Industries Plans ₹1,500 Crore IPO

Chemco Plastic Industries, a prominent producer of plastic packaging for prominent consumer brands like Coca-Cola, PepsiCo, and Bisleri, is set to go public with an IPO valued at approximately ₹1,500 crore, as reported by Moneycontrol. This public offering will consist of both fresh equity and a secondary share sale, with the primary funds allocated towards capital expenditure and debt reduction.

Investment banks Equirus, Axis Capital, and 360ONE are assisting Chemco in navigating the IPO process. The company's decision to launch an IPO follows an upward trend in investor interest in industrial companies as businesses strive for capital to grow their operations and enhance their infrastructure. Chemco, one of the leading firms in its sector, stands to benefit from a surge in investor attention due to its diverse product range and solid customer base.

The company manufactures an extensive array of rigid and flexible plastic packaging options, including PET preforms, bottles, jars, containers, caps, shrink films, and stretch wraps. These items are employed across various sectors such as beverages, food, healthcare, personal care, household goods, and lubricants. Chemco's clientele includes major consumer entities such as Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson, and Danone.

The company's operational presence and financial performance have been noteworthy. Established in 1996 by polymer engineer Ramawatar Saraogi, Chemco has since broadened its focus beyond beverage packaging to encompass fields like baby care products, technical textiles, geotextiles, feminine hygiene products, and houseware. Vaibhav Saraogi, the managing director, oversees the company's operations.

Chemco's presence spans 23 sites in India and West Asia, with manufacturing bases in India, the United Arab Emirates, Bahrain, and Saudi Arabia. Annually, the company processes over 1.25 lakh tonnes of plastic polymers. According to Crisil Ratings, Chemco Group reported an operating income of ₹939 crore in fiscal year 2025, marking a 22% increase from ₹768 crore in the preceding year.

Profit after tax also saw a rise, reaching ₹61.9 crore from ₹52.3 crore in the same period. The company's operating margins have remained steady between 16% and 18%, indicating consistent profitability even amidst competition in the packaging industry. The planned IPO is anticipated to furnish Chemco with additional funds to fuel future expansion while fortifying its financial standing.