Uflex’s subsidiary to establish US$126M aseptic packaging facility in Egypt

EGYPT – Flex Asepto (Egypt) S.A.E., a subsidiary of Uflex, has unveiled plans to invest US$126 million in a new aseptic packaging facility in Egypt.

This significant investment will boost production capacity by 12 billion packs annually, addressing the growing demand for aseptic packaging in Egypt, Europe, the Middle East, and East Africa.

The project, funded through a combination of borrowed and owned capital, is expected to be operational by September 30, 2025.

This expansion marks a strategic move for Uflex, which seeks to strengthen its position in the global packaging industry.

Following this announcement, Uflex reported improved financial results for Q1 FY25. The company’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 the revenue in Q1 FY25, up from 41% in the same period last year, while the domestic business accounted for 43%, down from 59%.

Sales volume increased by 10.4% year-over-year, reaching 1,58,022 metric tonnes, with packaging films accounting for 76.9% and packaging 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 by nearly 43.5% since the beginning of the year and gained over 58% in the past year.

Green energy initiatives for Uflex’s Karnataka plant

In line with its commitment to sustainability, Uflex signed a long-term agreement in April to procure renewable energy for its packaging film plant in Dharwad, Karnataka.

The Power Purchase Agreement (PPA) with Amplus Phoenix Private Limited aligns with Uflex’s goal of achieving net-zero emissions by 2035.

This shift to renewable energy is expected to reduce the company’s carbon footprint by 19,000 tonnes of CO2 equivalent annually.

The Dharwad plant, operational since 2022, is a key part of Uflex’s global manufacturing network, featuring advanced production lines for BOPET, CPP, and metallized films.

Uflex continues to demonstrate its commitment to sustainability through initiatives such as recycling multi-layer plastics and aseptic packaging waste, promoting sustainable practices worldwide.

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