Coca-Cola, PepsiCo Supplier Chemco Plastic Industries Plans ₹1,500 Crore IPO
Chemco Plastic Industries, a major plastic packaging supplier to Coca-Cola, PepsiCo and Bisleri, is planning a ₹1,500 crore IPO. The company’s proposed issue will include fresh shares and an offer for sale. Funds raised will support expansion plans and debt reduction as investor interest grows in industrial companies
Photo by Olenka Sergienko from Pexels
Chemco Plastic Industries, a leading manufacturer of plastic packaging products for major consumer brands including Coca-Cola, PepsiCo and Bisleri, is preparing to launch an initial public offering (IPO) worth around ₹1,500 crore, according to a report by Moneycontrol.
According to the report, the proposed public issue will include both fresh equity issuance and a secondary share sale.
The company plans to utilise the primary proceeds for capital expenditure and debt reduction. Investment banks Equirus, Axis Capital and 360ONE are reportedly advising Chemco on the IPO process.
Packaging company eyes IPO-led expansion
The planned IPO comes amid rising investor interest in industrial companies as businesses seek capital to expand capacity and strengthen operations.
Chemco, one of the largest players in its segment, is expected to attract investor attention due to its diversified product portfolio and established customer base.
The company manufactures a wide range of rigid and flexible plastic packaging solutions, including PET preforms, bottles, jars, containers, caps, shrink films and stretch wraps.
These products cater to industries such as beverages, food, healthcare, personal care, household products and lubricants.
Chemco supplies packaging solutions to several leading consumer companies, including Nestlé, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, Cipla, Johnson & Johnson and Danone.
Strong operational footprint and financial growth
Founded in 1996 by polymer engineer Ramawatar Saraogi, Chemco has expanded beyond traditional beverage packaging into segments such as baby-care products, technical textiles, geotextiles, feminine hygiene products and houseware. The company is currently led by managing director Vaibhav Saraogi.
Chemco operates across 23 locations in India and West Asia, with manufacturing facilities in India, the United Arab Emirates, Bahrain and Saudi Arabia. The company processes more than 1.25 lakh tonnes of plastic polymers annually.
According to Crisil Ratings, Chemco Group reported operating income of ₹939 crore in FY25, registering a 22% rise from ₹768 crore in the previous year. Profit after tax increased to ₹61.9 crore from ₹52.3 crore during the same period.
The company’s operating margins remained stable between 16% and 18%, reflecting steady profitability despite operating in a competitive packaging market.
The proposed IPO is expected to provide Chemco with additional capital to support future growth while strengthening its balance sheet.
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