India’s Dhunseri Group to invest over US$250M to expand packaging films business

INDIA – Dhunseri Group, one of India’s leading diversified industrial conglomerates, has announced plans to invest more than Rs 22 billion (US$254.4 million) by the financial year 2028–29 to scale up its flexible packaging films operations significantly.

The investment will be implemented through its wholly owned subsidiary, Dhunseri Poly Films Pvt. Ltd. (DPFPL), and will involve both greenfield and brownfield expansions.

The group’s expansion strategy includes a major greenfield project in Kathua, Jammu and Kashmir, with an investment outlay of Rs 12.4 billion (US$143.24m).

This project will see the installation of two new production lines for biaxially oriented polypropylene (BOPP) films, with commercial production expected to commence by 2027.

The Kathua facility aims to tap into the growing demand for flexible packaging from food, FMCG, and pharmaceutical industries while also leveraging regional incentives and improved logistics infrastructure.

In parallel, Dhunseri will invest approximately Rs 10 billion (US$115.52m) in a brownfield expansion at its existing plant in Panagarh, West Bengal.

The Panagarh facility, already operational since December 2023, will be upgraded with two additional lines: one for biaxially oriented polyethylene terephthalate (BOPET) and one for BOPP films.

The new lines are expected to be operational by 2029 and will be financed through a 70:30 debt-equity ratio.

This aggressive expansion strategy is designed not only to meet surging domestic demand for sustainable and high-performance packaging films but also to boost Dhunseri’s exports to key international markets, including Europe, Bangladesh, and Nepal.

Dhunseri Ventures, the parent entity, reported a robust financial performance for FY2025, with a net profit of Rs 142.9 billion (US$1.65bn) and revenues reaching Rs 480.4 billion (US$5.55bn).

This financial strength positions the group well to undertake large-scale capital expenditure across multiple geographies.

The company’s long-term growth strategy in packaging films aligns with the broader global shift toward recyclable, lightweight packaging materials.

By expanding its production of BOPET and BOPP films, both widely used in flexible packaging due to their strength, transparency, and barrier properties, Dhunseri aims to cater to the rising demand for sustainable packaging solutions from consumers and industries.

With these planned expansions, Dhunseri Poly Films is poised to become a more prominent player in the South Asian flexible packaging market, contributing not only to India’s manufacturing capacity but also to the country’s export earnings and circular economy ambitions.

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