Uflex looks at doubling Polish unit's capacity

Uflex Ltd, India's largest flexible packaging company, has decided to double the capacity of its existing 30,000 million tonne polyester film unit in this Polish city to expand the company's market penetration in Europe.

The facility here involved an investments of $80 million and the project, which started commercial production in July 2012 last year, has since completed one full year of operation.

"We have pursued global investment in both greenfield and brownfield projects. This has been our consistent strategy. In this regard, we have successfully invested more than $500 million," said R.K. Jain, group president for corporate finance and strategy.

"This has given us the strength to address our dual commitment: To the investors, by creating incremental value on their investments, and to clients, by offering products that add value to their go-to-market strategy," Jain told a group of visiting Indian journalists here.

Besides India, Uflex has a manufacturing base now in Mexico, Dubai, Egypt, Poland and the US, helping it to cater to markets in the Americas, Europe, CIS countries, Africa, the Middle East and South Asian Countries. The company caters to over 140 countries.

The client list is also impressive: Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, Hindustan Petroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit and Birla 3M, among others.

The group offers finished packaging solutions a wide variety of products such as frozen food, sea food, meats, pet food, snack food, candy and confectionery, sugar, cereals, beverages, desert mixes, noodles, cosmetics, vegetable oil, spices, marinates & pastes, dairy products, pharmaceuticals, contraceptives, plant nutrients, and automotive oil, lubricants and components.

Speaking about the Polish facility, Uflex officials said it was operating as a 100-percent subsidiary, helping the parent further consolidate its position as a supplier of packaging products in north and east Europe. "The first full year of operations of Uflex in Poland saw a contribution of $90 million to the revenues."

For the full financial year ended March 31, Uflex recorded 14 percent growth in consolidated net revenues at Rs.5,161 crore, against Rs.4,516 crore in the previous year. For the six-month period ended Sep 30, 2013 consolidated revenues were Rs.2,914 crore, against Rs.2,626 crore in the corresponding period last year.

The higher revenue is attributed to new capacity added by the company at Wrzesnia in Poland and Kentucky in the US, both of which commenced commercial production over the past year, Jain said.

"We also witnessed favourable demand trends for our innovative flexible packaging solutions. This saw an increased uptake from clients globally. Let me also add, the profit margins are showing marked improvement quarter-over-quarter during the current financial year."