Flexible packaging company Uflex is eyeing up to 60% growth in the net profit at around Rs 425 crore this fiscal, on the back of boost in demand.
"Last year was very challenging for us as our polyester films segment, which contributes about 63% to overall revenue, was hit due to demand deficit following the euro zone crisis. This affected the net profit that declined by 65% at Rs 256 crore.
"However, the situation has started improving dramatically and coupled with the continued growth in our other segments we are expecting 55-60% growth in net profit in FY13 at about Rs 400-425 crore," Uflex Group President, Finance and Accounts, R K Jain told PTI here.
The firm manufactures a variety of value-added packaging materials and sophisticated products with existing total capacity of 3,44,000 tonnes per annum from its 12 units.
The company is expecting about 30% growth in revenue at Rs 5,800-6,000 crore this fiscal from Rs 4,424 crore in FY12, he said.
Uflex has an ambitious plan to clock Rs 10,000 crore, or $2 billion, revenue in three years, Jain said.
"To achieve this target we will increase our capacity and are also looking out for greenfield as well as brownfield expansions, which mostly will be overseas," he said.
At present, the company has set up two manufacturing units -- one in Wrzesnia in Poland and the other in Kentucky in the US -- with Rs 750 crore invested in each plant.
The company will have an additional capacity of 60,000 tonnes in polyester films to the existing 1.96 lakh tonnes and 10,000 tonnes in packaging segment to its current 67,000 tonnes, he said, adding that this will take the total capacity to 4,14,000 tonnes per annum.
"However, we will maintain our capacity of Biaxially Oriented Polypropylene (BOPP) films at the current level of 81,000 tonnes," he added.
The company, which has over 5,000 employees, will add 300 more when the new Poland unit will be commissioned by June and Kentucky plant will be commissioned by December, he said.
In the polyester films segment, Uflex is the fourth largest company enjoying around 6% market share, he said.