The Hindu Business Line : Gift-wraps manufacture — Flex eyes tie-ups in Poland, US

Flex has earmarked Rs 35-crore investment in expanding production; it also plans to establish joint ventures overseas and aggressively market these products in the domestic market.

The company wants to set up joint venture operations in Poland as well as the US.

The Flex Industries President, Mr Sutendra Kumar, told Business Line, "The consumer packaging business of gift-wraps and zipouches is expected to witness exponential growth. It contributed a mere Rs 20 crore to Flex Industries' topline last fiscal but is expected to become a Rs 500-crore business over the next five years."

He said the company is keen to set up a manufacturing operation in Poland for gift-wraps, as a joint venture with a local partner, so that it becomes a supply base for the European market.

"We are in advanced stages of negotiations with a Polish company, and expect to take a minority 40-per cent stake in the joint venture. Once this is established, we will supply feedstock from India so that printing and conversion can be done in Poland."

Mr Kumar said a similar hunt for a suitable joint venture partner is also on in the US for zipouches, since the US market for such products has been estimated at $300 million.

Zipouches are being promoted as a complete range of food storage solution.

On whether gift-wraps and zipouches would be launched in the domestic market as well, Mr Kumar said special products at lower prices were being developed for India.

Efforts are also on to enhance the company's retail and distribution focus in the home market.

Mr Kumar said Rs 30-35 crore would be invested in the Noida manufacturing plant for hiking the production capacity of zipouches to 30 million per month in the next three years. Also, Rs 7 crore is being spent on advertising and promotion of this product in India.

Flex Industries makes flexible packaging films, holographic films, metallised films and other packaging material.

The company is divided into four separate divisions - Films (Rs 400 crore), Converting Division (Rs 250 crore), Cylinders (Rs 40 crore) and International Division (Rs 20 crore).

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