Leading flexible packaging company Uflex Ltd on Tuesday announced that it will set up a manufacturing facility at Sanand in Ahmedabad with an investment of Rs 1,500 crore. The plant would become fully operational by April 2017.
In the first phase, the company would invest Rs 580 crore for setting up an aseptic liquid packaging plant, with a capacity of seven billion packs, by April 2016, R K Jain, Group President (Corporate Finance), said here. It will employ about 250 people.
Completion of all phases of the project, spread over 72 acres, will see about 3,000 people working there. About 90 per cent of the factory’s output will cater to the domestic demand which is expected to double to 16 billion packs in the next five years, he said.
The 40-year-old Uflex currently has three plants in India with a plastic film manufacturing capacity of 3.37 lakh tonnes per annum, and also has manufacturing facilities in Dubai, Mexico, Egypt, Poland and the USA.
The company's revenues increased from Rs 4,540 crore in FY12 to Rs 6,201 crore in FY16, with over 50 per cent being from Indian operations. At its full capacity utilisation, the Sanand plant is expected to generate revenues of Rs 1,200 crore, with an operational profit of Rs 800 crore.
The company, which also plans to enter the cement packaging segment, will use 50 per cent of its electricity requirements at Sanand from solar energy, said Ashwani Sharma, President and CEO (Liquid Packaging and New Business).
The global packaging market size in this segment is 240 billion packs, with a projected global CAGR of 9.33 per cent until 2019. With Tetra Pak leading the show globally, 40 per cent of this market is from dairy products alone, the rest being from juices and liquors.