To complement its backward integration strategy, UFlex, a leading flexible manufacturer, is investing around USD 200 million (more than ₹1,710 crore) in Egypt through two significant projects. By making these investments, the company hopes to increase its market share in local, regional, and European markets while guaranteeing a steady supply of essential raw materials.
The development of a PET chip facility, which is essential for making the widely used BOPET films, is the first project, which is estimated to be worth about USD 70 million. The second project, which would cost between USD 125 and USD 130 million, aims to build an aseptic packaging facility in order to satisfy the expanding need for packaging solutions in Egypt, the Middle East, and Europe.
The PET resin facility is a strategic move to ensure the supply of raw materials needed for their BOPET film production, which has been a long-standing goal, according to Rajesh Bhatia, Group President and CFO of UFlex. "It is the right time to integrate our raw material supply, given the scale we have reached in markets like Russia, Poland, Egypt, and Nigeria," Bhatia said. In order to address domestic demand, UFlex had previously spent ₹600 crore in a PET chips factory in Panipat, India, which was finished earlier this year.
Since there is now no manufacturing facility for such packaging, the aseptic packaging plant in Egypt will be able to create 12 billion packs a year in order to meet local demand. Bhatia noted that because Egyptian exports to Europe are duty-free, providing a competitive edge, the Egyptian plant will also service European markets. By the end of FY26, the project should be finished.
Targeting rising demand in Africa, the Middle East, and Europe, UFlex's development in Egypt is consistent with its larger growth strategy. Following a sales of ₹13,510 crore in the fiscal year 2023–2024, the corporation is projecting a 15% consolidated revenue growth for FY25.
The biggest international corporation in India that specializes in flexible packaging and solutions is called UFlex. Since its founding in 1985, the business has grown to include packaging films, chemicals, aseptic liquid packaging, flexible packaging, holography, engineering, and printing cylinders, among other aspects of the packaging value chain. With more than 10,000 specialists working across the globe, UFlex is well known for developing packaging solutions that are value-driven, sustainable, and innovative.
It serves Fortune 500 customers in more than 150 countries in sectors like consumer products, FMCG, pharmaceuticals, building materials, and cars. With its headquarters located in Noida, India, UFlex has established a global footprint by operating cutting-edge manufacturing facilities in India, the United Arab Emirates, Mexico, Egypt, the United States, Poland, Russia, Nigeria, and Hungary.
Add Comment