Indian flexible packaging giant UFlex Ltd has unveiled ambitious expansion plans with a massive investment exceeding ₹700 crore to scale up its packaging film manufacturing operations in Dharwad, Karnataka. This strategic move represents one of the significant developments in India's growing packaging sector.
Major Capacity Enhancement in Karnataka
The Noida-headquartered company will inject substantial capital to add 54,000 metric tonnes per annum (MTPA) of fresh capacity at its Dharwad facility. According to Rajesh Bhatia, Group President and CFO of UFlex Ltd, this investment will dramatically strengthen the company's product portfolio and enhance its capability to deliver scalable, high-quality packaging solutions to customers across markets.
This expansion will elevate UFlex's global packaging film capacity from the current 636,160 MTPA to 690,160 MTPA, marking a substantial increase in the company's overall production capabilities. The Dharwad project underscores UFlex's commitment to expanding its manufacturing footprint within India while serving both domestic and international markets.
Global Expansion Strategy Gains Momentum
The Karnataka expansion forms part of UFlex's comprehensive global growth strategy. The company recently completed significant capacity augmentation at its Sanand plant in Gujarat, where aseptic packaging capacity jumped from 7 billion to 12 billion packs annually.
Beyond domestic projects, UFlex is advancing three major international initiatives that will substantially boost its global presence:
- Egypt: Construction of a massive 12-billion-pack aseptic plant is currently underway
- Mexico: An 80-million WPP bags production line is scheduled to commence operations
- India: A approximately 40,000 MTPA recycling facility will be established in Noida, adjacent to company headquarters
Bhatia confirmed that all these strategic projects are progressing according to schedule and will collectively add significant scale and capability to UFlex's global packaging portfolio.
Financial Projections and Market Outlook
The company expects these new capacities to begin contributing to revenue streams from FY27 onwards, with full operational impact anticipated by FY28. According to financial projections, these investments are likely to generate approximately ₹3,000 crore in additional revenue once all facilities become fully operational.
This revenue boost comes on the back of UFlex's strong financial performance, having reported consolidated revenue exceeding ₹15,000 crore in FY25. The new capacities are expected to further accelerate this growth trajectory.
Bhatia also highlighted favorable market developments in India, including GST rationalization that is expected to boost overall consumption patterns. Additionally, India's Extended Producer Responsibility (EPR) framework is poised to drive increased demand for recycled packaging materials, creating synergistic opportunities for UFlex's expanding recycling capabilities.
The CFO expressed confidence that these combined developments establish a robust foundation for sustained growth across all UFlex business segments, positioning the company as a dominant player in the global packaging landscape.
