UFlex Announces Major ₹700+ Crore Karnataka Expansion
Flexible packaging giant UFlex Ltd will invest over ₹700 crore to expand its packaging film manufacturing facility in Dharwad, Karnataka, adding significant production capacity to meet growing demand.
Key Takeaways
- ₹700+ crore investment in Dharwad, Karnataka plant
- 54,000 MTPA new packaging film capacity
- Global capacity to reach 690,160 MTPA
- Expected ₹3,000 crore additional revenue from expansions
- Multiple global projects underway in Egypt, Mexico, and Noida
The Noida-based company’s expansion will add 54,000 metric tonnes per annum (MTPA) capacity, boosting its global packaging film capacity from 636,160 MTPA to 690,160 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.
Global Expansion Strategy
The Dharwad investment is part of UFlex’s broader global capacity building strategy. The company recently completed capacity augmentation at its Sanand, Gujarat plant, increasing aseptic packaging capacity from 7 billion to 12 billion packs annually.
Three other major strategic projects are progressing globally:
- Egypt: 12-billion-pack aseptic plant
- Mexico: 80-million WPP bags production line
- India: 40,000 MTPA recycling facility in Noida
Speaking of these projects, Bhatia noted that they are “progressing well and will add significant scale and capability to our global packaging portfolio.”
Financial Projections and Growth Outlook
UFlex expects the new capacities to start contributing from FY27 and reach full impact in FY28, supporting steady and profitable growth.
The expansions are projected to generate nearly ₹3,000 crore in additional revenue once fully operational. The company reported consolidated revenue exceeding ₹15,000 crore in FY25.
“In FY25, we reported consolidated revenue of over ₹15,000 crore, and these new capacities will strengthen our growth trajectory even further,” Bhatia added.
Market developments including GST rationalization and India’s EPR (extended producer responsibility) framework are expected 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.
