UFlex to invest over Rs 700 cr to expand packaging film capacity at Karnataka plant

New Delhi, Nov 23 (PTI) Flexible packaging and solutions maker UFlex Ltd will invest over Rs 700 crore to expand its packaging film manufacturing line in Dharwad, Karnataka, according to a senior company official.

The company will add 54,000 MTPA of new capacity at the plant, bringing its global packaging film capacity to 690,160 MTPA, up from 636,160 MTPA.

"We plan to invest over Rs 700 crore to expand our packaging film manufacturing line in Dharwad, Karnataka. This project will add 54,000 MTPA of new capacity, significantly strengthening our portfolio and enhancing our ability to serve customers with scalable, high-quality packaging solutions," UFlex Ltd Group president and CFO, Rajesh Bhatia, told PTI in an e-mailed interview.

The expansion in Dharwad follows the recently completed aseptic packaging capacity augmentation at Sanand, in Gujarat, where capacity was increased from 7 billion to 12 billion packs per year, he added.

"In addition, three major strategic projects, including a 12-billion-pack aseptic plant in Egypt, an 80-million WPP bags line in Mexico, and an approximately 40,000 MTPA recycling facility in Noida, are progressing well and will add significant scale and capability to our global packaging portfolio," Bhatia said, sharing the company's ongoing expansions.

Stating that these projects will add significant scale and capability to the company's global packaging business, he said, "We expect these new capacities to start contributing from FY27 and reach their full impact in FY28, supporting steady and profitable growth." Commenting on the likely gains from the expansions, Bhatia said, "We expect these investments to generate nearly Rs 3,000 crore in additional revenue once fully operational. In FY25, we reported consolidated revenue of over Rs 15,000 crore, and these new capacities will strengthen our growth trajectory even further." He also noted that the GST rationalisation will boost overall consumption, and India's EPR (extended producer responsibility) framework will increase demand for recycled packaging materials.

"All these developments together create a strong foundation for ongoing growth across our businesses," Bhatia said. PTI RKL DRR DRR