Coca-Cola, PepsiCo packaging supplier eyes ₹1,500cr IPO
What's the story
Chemco Plastic Industries, a leading supplier of plastic packaging products to major companies like Coca-Cola and PepsiCo, is gearing up for an initial public offering (IPO) worth ₹1,500 crore, according to Moneycontrol. The proposed offer will be a combination of primary and secondary share sales. The capital raised from the primary offering will be utilized for capital expenditure (capex) requirements and debt reduction.
Deal management
Axis Capital, Equirus, and 360ONE lead Chemco's IPO
The deal for Chemco's IPO is being handled by investment banks Equirus, Axis Capital, and 360ONE.
"Industrials as a sector is seeing strong demand from domestic investors and that's why we are seeing many such companies tap the IPO market to raise funds for growth and expansion," one of the sources told Moneycontrol.
Information
What does Chemco do?
Chemco manufactures a wide range of rigid and flexible plastic packaging products. These include polyethylene terephthalate (PET) preforms, bottles, jars, containers, caps, shrink films and stretch wraps. The company's products are used in various industries including beverages, food, personal care as well as healthcare products.
Clientele
Clients and presence
Chemco boasts an impressive list of clients including Nestle, Procter & Gamble, Dabur, Parle Agro, Britannia, Godrej, Marico, Reckitt, Hindustan Unilever, Amul, and Danone.
The company has a strong presence in 23 locations across India and West Asia.
It processes more than 1.25 lakh tons of plastic polymers annually at its manufacturing units in Silvassa, Vadodara, Daman, Halol, and Sanand (India) as well as UAE, Bahrain, and Saudi Arabia.
Financial growth
Financials and market scenario
The Chemco Group reported an operating income of ₹939 crore in FY25, a 22% increase from ₹768 crore the previous year, according to Crisil Ratings.
Its profit after tax rose to ₹61.9 crore from ₹52.3 crore while operating margins remained stable at 16-18%.
Chemco's IPO comes amid strong investor interest in manufacturing and industrial businesses as India recovers its IPO market after a slow start to 2026.