Dhunseri Group, which has business interests in petrochemical downstream and tea, has earmarked an investment of ₹2,240 crore to scale up manufacturing of plastic packaging materials in Bengal and Jammu & Kashmir by 2029.

Led by Chandra Kumar Dhanuka, it has kicked off a greenfield project at Kathua in Jammu, where it would put up a BOPP (biaxially oriented polypropylene) plant with a capacity of 128,000 tonnes. The unit will be fully operational by 2027.

BOPP is a versatile packaging material used by the FMCG industry for its gloss, tensile strength and moisture resistance. The J&K plant will call for an investment of ₹1,240 crore. However, the project has also been selected for one of the most generous incentive schemes ever given by any government in India.

Under the Central scheme specifically aimed at promoting industry at J&K, which has been subjected to nearly four decades of insurgency, the Dhunseri project is expected to earn incentives worth ₹1,800 crore over a period of 10 years, thereby more than covering the initial investment in the plant.