UFlex commits US$86.35M to expand manufacturing with new facilities

INDIA – India’s leading flexible packaging solutions provider, UFlex, is investing over US$86.35 million to establish a woven polypropylene bags (WPP) manufacturing unit in Mexico and a new recycling facility in Noida, India.

These operations are expected to commence within the financial year 2025-26 (FY25-26).

The UFlex board has approved a US$50 million investment for the WPP manufacturing plant in Mexico, aimed at serving the growing North and South American pet food markets.

The facility is projected to produce 80 million bags annually, positioning UFlex to meet increasing demand for high-quality packaging solutions in the region.

Additionally, a US$36.4 million recycling unit in Noida has been sanctioned, reinforcing UFlex’s commitment to sustainability and compliance with India’s extended producer responsibility (EPR) legislation.

The Noida recycling facility will feature two units capable of processing a combined 39,600 metric tonnes per annum (mtpa) of plastic waste.

This includes a 36,000 mtpa post-consumer recyclate polyethylene terephthalate unit and a 3,600 mtpa mixed plastic unit, reflecting UFlex’s dedication to tackling plastic waste challenges.

UFlex Group Chair and Managing Director, Ashok Chaturvedi, stated, “We are pleased to announce our new woven polypropylene bags manufacturing plant in Mexico for pet food packaging.

“With an estimated US$50 million investment, this facility will be Mexico’s first WPP packaging plant, catering to the lucrative North and South American pet food market, which is expected to grow from US$90 billion in 2025 to approximately US$135 billion by 2030.

“In line with our commitment to India’s EPR legislation, we are investing ₹3.17 billion (US$36.4 million) in advanced recycling technologies to strengthen our sustainability efforts.”

Last October, UFlex subsidiary Flex Asepto (Egypt) S.A.E. announced a US$126 million investment in a new aseptic packaging facility in Egypt.

This project, expected to be operational by September 30, 2025, will increase production capacity by 12 billion packs annually, catering to the growing demand in Egypt, Europe, the Middle East, and East Africa.

This expansion aligns with UFlex’s strategy to strengthen its global market presence. Following these announcements, the company reported improved financial results for Q1 FY25.

UFlex’s net loss narrowed to ₹98.4 crore (US$11.7 million) from ₹416.2 crore (US$49.5 million) in the same period last year.

Total consolidated revenue grew by 12.3% year-over-year to ₹3,682 crore (US$437.97 million), while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 45% to ₹440 crore (US$52.34 million).

The EBITDA margin expanded by 270 basis points to 12%, with the net loss margin improving to -2.7%.

UFlex’s international business contributed 57% of total revenue in Q1 FY25, up from 41% the previous year, while the domestic business accounted for 43%, down from 59%.

Sales volume increased by 10.4% year-over-year to 158,022 metric tonnes, with packaging films making up 76.9% and packaging accounting for 23.1%.

The company also reported improved margins in its packaging film business, particularly in rural markets, and increased sales volumes in the USA and Mexico.

UFlex shares have surged nearly 43.5% since the beginning of the year and gained over 58% in the past year, reflecting strong investor confidence in the company’s growth trajectory.

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