Uflex aims to double revenue to $2 bn in 3 yrs

To set up polyester film plant in Kentucky, USA that is slated to be operational by December

India's largest flexible packaging company Uflex Ltd is looking to double turnover to around 9,500 crore in three years and is in the process of spending $250 million on capex spread over two years.

This will involve investments in setting up new manufacturing facilities and capacity expansion at existing locations, Uflex group President (corporate finance and accounts) R K Jain said at a press conference at an offsite event here. The company has a plant in Egypt.

The investment includes $80 million being spent on setting up a polyester film plant in Kentucky (USA) that is slated to be operational by December, Jain said, adding that the plant will have an annual capacity of 30,000 tonne.

It is the first greenfield investment by an Indian company in Kentucky, as also Uflex's first manufacturing facility in the US, Jain said.

Uflex closed the financial year ended March 31, 2012 with 30% growth in consolidated revenues of Rs 4,543 crore, as against Rs 3,540 crore for the previous year, on favourable demand trend for its products globally.

"Currently, we are getting 35% revenues from overseas market and we expect this to be 50:50 by 2015. We are targeting to grow to $2 billion by 2015," Jain said.

"We are growing by 25-30% CAGR and have about a billion dollar revenue. With that growth rate, we should be close to Rs 9,000 or Rs 9,500 crore by FY'15," he said.

"The $250 million-investment is aimed at capacity expansion plans we are currently planning," he added.

Uflex has five manufacturing plants spread over the world - India, Egypt, Dubai, Mexico and Poland.

The company's 30,000 tonne per annum Poland facility commenced operations in July and during the last financial year it completed the second phase of expansion of facility in Mexico, aggregating a total annual capacity of 60,000 MT of PET film.

"The company's total investments in Egypt are pegged at $135 million, while the investments in Mexico amounted to $109 million.

"The facility in Egypt has trade pacts with Gulf nations, Southern Europe and Africa, Middle East, West Asia and CIS countries to access larger markets, while that in Mexico has trade pacts and is part of North American Free Trade Agreement, thus it has access to a large market like North America," Jain said.

The company may also go for acquisitions if it comes across companies that would fulfil the requirements, he added but declined to share details.

Uflex's market share in India is around 35% of the organised market.