UFlex to invest over Rs 700 crore to scale up packaging film capacity in Karnataka

Flexible packaging and solutions maker UFlex Ltd will invest over Rs 700 crore to expand its packaging film manufacturing line in Dharwad, Karnataka, a senior company official said on Sunday.

The expansion will add 54,000 MTPA of new capacity at the plant, raising the company’s global packaging film capacity to 690,160 MTPA from 636,160 MTPA.

“We plan to invest over Rs 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 PTI in an e-mailed interview.

The Dharwad expansion comes after the recent completion of aseptic packaging capacity augmentation at Sanand in Gujarat, where capacity was increased from 7 billion to 12 billion packs per year.

“In addition, three major strategic projects, including a 12-billion-pack aseptic plant in Egypt, an 80-million WPP bags line in Mexico, and an approximately 40,000 MTPA recycling facility in Noida, are progressing well and will add significant scale and capability to our global packaging portfolio,” Bhatia said.

He said these projects will add significant scale and capability to the company’s global packaging business. “We expect these new capacities to start contributing from FY27 and reach their full impact in FY28, supporting steady and profitable growth.”

On the expected gains from these expansions, Bhatia said, “We expect these investments to generate nearly Rs 3,000 crore in additional revenue once fully operational. In FY25, we reported consolidated revenue of over Rs 15,000 crore, and these new capacities will strengthen our growth trajectory even further.”

He added that GST rationalisation will boost overall consumption, while India’s extended producer responsibility (EPR) framework will increase demand for recycled packaging materials.

“All these developments together create a strong foundation for ongoing growth across our businesses,” Bhatia said.