UFlex plans major expansion in Karnataka with over ₹700 crore investment

Flexible packaging and solutions manufacturer UFlex Ltd. is gearing up to invest more than ₹700 crore to expand its packaging film manufacturing line in Dharwad, Karnataka, PTI reported, citing a senior company official.

The Noida-based company will add 54,000 metric tonnes per annum (MTPA) of new capacity at the plant. This will increase its global packaging film capacity to 690,160 MTPA, a rise from the current capacity of 636,160 MTPA.

“We plan to invest over ₹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 the news agency.

Ongoing expansion efforts globally

The Dharwad expansion is part of a broader strategy of capacity building. The company recently completed an aseptic packaging capacity augmentation at its Sanand, Gujarat plant, raising its capacity from 7 billion to 12 billion packs per year, the CFO added.

Furthermore, UFlex has three other major strategic projects progressing globally, which include:

— Egypt: The company is building a 12-billion-pack aseptic plant in the country, but it did not mention the exact location.

— Mexico: 80-million WPP bags line is set to be opened in the country.

— India: An approximately 40,000 MTPA recycling facility will be built in Noida, the city where the company's headquarters is located.

Speaking of these projects, Bhatia noted that they are “progressing well and will add significant scale and capability to our global packaging portfolio.”

The company's growth projection

With the progressing projects, UFlex aims to add significant scale and capability to the company's global packaging business, as he stated, “We expect these new capacities to start contributing from FY27 and reach their full impact in FY28, supporting steady and profitable growth.”

Speaking of the projected gains from the expansions, Bhatia said these investments are likely to generate nearly ₹3,000 crore in additional revenue once fully operational. “In FY25, we reported consolidated revenue of over ₹15,000 crore, and these new capacities will strengthen our growth trajectory even further,” he added.

The CFO also highlighted that market developments in India, such as the GST rationalisation, will boost overall consumption, adding that India's EPR (extended producer responsibility) framework is also set to drive increased demand for recycled packaging materials.

“All these developments together create a strong foundation for ongoing growth across our businesses,” Bhatia told PTI.