New Delhi, Dec 30 (PTI) Flexible packaging and solutions firm UFlex is investing around USD 200 million (over Rs 1,710 crore) in Egypt on two projects as part of its backward integration strategy, in a bid to serve markets neighbourhood countries and Europe, besides catering to domestic requirements, according to a senior company official.
The company is putting in around USD 70 million on a facility of PET chips (polyethylene terephthalate) — a raw material essential for BOPET films (thin polyester packaging films) as part of the backward integration strategy and another USD 125-130 million on an aseptic packaging unit, UFlex Ltd Group President (Finance and Accounts) and CFO, Rajesh Bhatia told PTI.
“In Egypt, we have two expansions currently going on. The first is the PET resin facility which is our backward integration, because we make BOPET films for which we require the PET resin. This project has been on the anvil for so many years,” he said.
He further said, “given the size that we have attained, especially after we set up capacities in Russia, Poland, Egypt and Nigeria, we thought that it is high time now to also secure ourselves from a raw material perspective.” In India the company has already set up a PET chips facility in Panipat at an investment of Rs 600 crore to meet its Indian requirement and was completed in April this year, Bhatia said.
“The Egypt unit is to meet (demands from) Egypt, Middle East, Europe and if there is still a leftover (it will be used for) for the Americas requirements… This is a project that cost us about USD 70 odd million and we will complete it by the end of this fiscal,” he added.
The other major project in Egypt is the aseptic packaging facility, Bhatia noted.
“In aseptic packaging in Egypt, we are putting up a 12-billion-packs-per-annum capacity plant. That is to take care of the Egypt market, which is a 5-billion-packs-a-year market and currently there is no manufacturing facility,” he said.
Investment on the second project is about USD 125-130 million, Bhatia said, adding it is expected to be completed by the end of FY26.
On the significance of setting up the plant in Egypt, he said, “from Egypt, exports into Europe are duty free, so you get an advantage. Egypt being our existing hub as well as the lower cost of manpower and lower cost of energy is very favorable from the perspective of setting up a plant there with the target market being Egypt itself as well as the European markets.” Besides, the new facility will cater to the growing demand in Africa and the Middle East region, he added.
When asked about the overall growth outlook, Bhatia said UFlex is looking at 15 per cent consolidated revenue growth for FY25 over the previous fiscal year.
The company had posted a consolidated revenue of Rs 13,510 crore in 2023-24, as per its annual report. PTI RKL DRR DRR DRR
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