Press release uflex eyes $ 2bln revenue
Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company, today tabled their next phase of growth, which will involve investments in setting up new manufacturing facilities and capacity expansion in existing locations. Adding new capacities and favourable demand trends globally will add traction to UFLEX’s growth to the next milestone of touching the $2 billion revenue mark by FY 2015.
Published on: Mar 4, 2016
Transcripts - Press release uflex eyes $ 2bln revenue
UFLEX Ltd Eyes Next Milestone of $2 billion Revenue Mark by 2015 • Earmarks investment of $ 250 million in setting up new manufacturing facilities and capacity expansion both in India & overseas in next 2 years. • Total investments in Egypt pegged at $135 million; commissioned an AL-OX coater, CPP, BOPP and PET film plant in Egypt • Investing $90 $80 million to set up a polyester films plant in Kentucky, US; production to start by December 2012 • Production at manufacturing facility in Wrzesnia, Poland commenced in June July 2012 • 2nd phase of expansion of facility in Mexico completedEgypt, August 31, 2012: - Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed,Indias largest flexible packaging company, today tabled their next phase of growth, which will involveinvestments in setting up new manufacturing facilities and capacity expansion in existing locations.Adding new capacities and favourable demand trends globally will add traction to UFLEX’s growth to thenext milestone of touching the $2 billion revenue mark by FY 2015.In the financial year ended March 31, 2012, Uflex had become the first Indian company in the flexiblepackaging sector to achieve the milestone of $1 billion revenue. UFLEX’s agenda of global expansionand consolidation of its position as a truly Indian MNC (Multinational Corporation) with facilities in Dubai,Mexico, Egypt, India, Poland and USA reinforces its strategy of increasing proximity to potential markets,apart from bringing broad portfolio of value added products to its clients at competitive price points.According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “Our global investments inexcess of $500 million in greenfield and brownfield expansion is symbolic of our dual commitment - toinvestors, creating incremental value on their investments, on one hand; and solutions based innovationdriven product offerings that adds value to clients’ go-to-market strategy. Our investors and clients are ourguide to future growth strategies, which is crucial for us to Identify and harness the opportunities at theright time that is key to our strong foothold in the flexible packaging market globally.”Expansion PlansUflex Ltd is currently investing Rs 380 400-crore ($90 $80 million) to set up a polyester films plant inKentucky, in the US with an annual capacity of 30,000 metric tonnes. This facility will start production byDecember 2012. This will be the first Greenfield investment to be made in Kentucky by an Indiancompany, as also Uflex’s first manufacturing facility in the USA.
In the quarter ended June 30, 2012, Uflex completed the setting up of its new manufacturing facility forproduction of 30,000 MTs of polyester film in Wrzesnia, in Poland. The facility involved investments ofabout $80 million (around Rs 360 crore). The project has successfully commenced commercialproduction since June July 2012.During the financial year ended March 31, 2012, Uflex Ltd completed the 2nd phase of expansion of itsfacility in Mexico aggregating a total capacity of 60000 MT of PET film and commissioned an AL-OXcoater, CPP plant of 12000 MTs and PET film of 30,000 MTs in Egypt.The company’s total investments in Egypt are pegged at $135 million while the investments in Mexicoamounted to $109 million. The facility in Egypt has trade pacts with GCC nations, Southern Europe &Africa, Middle East, West Asia and CIS to access larger markets, while the facility in Mexico has tradepacts and is part of NAFTA, thus has access to a large market like North America.FinancialsUflex has grown from strength to strength registering a 22% increase in its consolidated net revenue forthe quarter ended June 30, 2012 at Rs. 1376 crore as against Rs. 1125 crore for the same period lastyear.The firms consolidated net profit for the June quarter of 2012 stood at Rs. 56 crore as against Rs. 96crore for the same quarter last year. However, sequentially, the revenue and net profit for Qtr. June, 2012viz – viz Qtr. March, 2012 has grown by 16% and 5% respectively. The higher revenue growth isattributed to new capacity expansion globally and increased uptake of innovative flexible packagingsolutions offered by the company across sectors.Uflex closed the financial year ended March 31, 2012 on a strong note registering a growth of 30% inconsolidated net revenues at Rs. 4543 crore as against Rs. 3540 crore for the previous year, on the backof favourable demand trends globally.Competitive AdvantageUflexs strong manufacturing base in India, Mexico, Dubai, and Egypt and Poland caters to globalmarkets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa andother African countries, the Middle East and the South Asian Countries.Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vastcapacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) andBiaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography,
Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, GravurePrinting, Lamination and Pouch formation.The companys partial client list includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive,Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, HindustanPetroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit, and Birla 3M, amongothers.