UFLEX Ltd Q4 FY11-12 Consolidated Net Revenue at Rs. 1195 crore and Net Profit of Rs. 51 Crore
New Delhi:- Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company has registered the Consolidated net revenue for the March quarter of 2012 of Rs. 1195 crore as against Rs. 986 crore for the same period last year, up 21%. The higher revenue growth has been achieved due to availability of new capacities and higher utilization thereof. However, the Consolidated net profit has not been in line with top line growth due to continued downward pressure on selling price and rising input cost of PET Film and overall rise of other operating and interest cost during the quarter. It has been lower at Rs. 51 crore as against Rs. 183 crore for the same period last year.
For the full financial year ended March 31, 2012, UFlex recorded a strong growth of 30% in consolidated net revenues at Rs. 4579 crore as against Rs. 3540 crore for the last year. However, net profit has been lower at Rs. 256 crore against Rs. 697 crore in the last year due to the reasons explained above.
According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “Exploring new markets and investment destinations has been an ongoing process for us, as has been innovation in product development that has ensured long term relationships with customers globally. This progressive outlook reflects well in our growth in revenues and goes on to stamp our commitment towards our other stakeholders of incremental value generation on investments.
UFLEX’s agenda of global expansion and consolidation of its position as a truly Indian MNC (Multinational Corporation) is reinforced with its strategy of capacity expansion and adding manufacturing lines for new product categories across facilities in Dubai, Mexico, Egypt, India, Poland & USA – not only to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.
During the financial year ended March 31, 2012, Uflex Ltd completed the 2nd phase of expansion of its facility in Mexico aggregating a total capacity of 60000 MT of PET film and commissioned an AL-OX coater, CPP plant of 12000 MTs and PET film of 30,000 MTs at Egypt.
Earlier, Uflex had initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The project is being implemented and is expected to be commissioned by June 2012.
The Company also announced plans to set up polyester film plant in Kentucky, US. The 1st phase will be commissioned by December 2012 having annual capacity of 30000 MTs.
Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.
The company’s partial client list includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, Hindustan Petroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit, and Birla 3M, among others.
First Anniversary of Uflex Khelo Dilli 2011-12 held
- Uflex Khelo Dilli witnesses participation of more than 5000 children across Delhi
- 28 Uflex Stairs centres established for children to play everyday
- Annual sporting event to be taken to other parts of the country
New Delhi, 29th April, 2012: The first anniversary of maiden edition of Uflex Khelo Dilli 2011-12, a philanthropic endeavor jointly undertaken by Stairs, an NGO working towards sports, education and health of underprivileged children and Uflex Ltd., India’s largest flexible packaging company, was today held at Ludlow Castle Sports Complex. Mr. Ashok Chaturvedi, CMD, Uflex Ltd. along with Mr. Anil Upadhyay, President, Stairs, presided over the occasion.
Uflex Khelo Dilli was conceptualized with the aim to provide free of cost – space, infrastructure and sports equipment to the less fortunate children of our society, to play.
The first edition of Uflex Khelo Dilli has already witnessed participation of more than 5000 children. These children are regulary playing at 28 Uflex Stairs centres which have been established near the colonies where these children reside. In the last one year, these centres have emerged as a hub of recreation for children from low economic background and ignited passion for playing in others as evident from increasing number of children getting enroled at these centres.
As Uflex Khelo Dilli enters into second year, Stairs is now planning to take this initiative to other parts of the country and encourage more children to come out and just play.
Commenting on the occasion, Mr. Ashok Chaturvedi, CMD, Uflex Ltd., said, “We are pleased to be associated with a noble cause of helping underprivileged children in achieving their dreams through the medium of sports. Besides being a recreational activity, sport has an educative character which can help in building a strong character and help in social integration of underprivileged youth. These children have a lot of potential and latent energy that needs to be tapped and through Uflex Khelo Dilli, we hope to channelize this energy in the right direction. Our association with Stairs represents an extension of our social commitment to bring about a positive change in the life of underprivileged sections of the society by carrying out such programmes in sport, education and health.”
“The fact that young children should be given an opportunity to simply come out and play and enjoy themselves, urged us to undertake this initiative. We amalgamated it with our noble cause to train underprivileged children who are blessed with talent but do not have the opportunity or platform to nurture it. We encouraged these children to take some time out and join in the games that would help them build a strong character through sports. I would also take this opportunity to thank Uflex for their valuable association and would like to look forward for a longstanding relation with the Uflex team”, says Mr. Anil Upadhyay, President, Stairs.
Apart from Khelo Dilli, Uflex Ltd. has also adopted cricket initiatives of Stairs, namely, Uflex Stairs Cricket Championship and Uflex Stairs Cricket Scholarship. Uflex Ltd. supports Stairs in running cricket training academies, providing sports scholarship and sports gear to the underprivileged children. Recently, 64 talented children have been granted the Uflex Stairs Cricket Scholarship and are being training at accredited cricket centres in Delhi.
Since its inception in 2005, Stairs has been actively involved in the upliftment of the less fortunate children mainly through the field of sports. The sporting initiatives undertaken by Stairs are aimed at providing a platform to these children to hone their skills and showcase their talent through sports camps. Stairs understands the amount of talent that exists among these children and believes in creating opportunities so that their talent is rightly tapped and nurtured. Talented children are chosen from these camps and provided coaching, sports scholarship and sports gear.
Some of the students who have been identified by Stairs are already doing well at the national level and are earning laurels for their states. Stairs also organizes sports camps at regular intervals to promote youth talent.
About Stairs:
Stairs is a non-profit organization working in the field of development of underprivileged youth through channelisation of their energies in sports and education.
Sustainable growth – mainstay of the packaging sector
With growing awareness and sensitization, the consumers today are becoming increasingly receptive about the issue of sustainability and the effect their actions and choices have from a sustainable point of view. The approach now is more proactive thereby making purchase decisions that do not affect the environment adversely. Industries across the world are trending towards this phenomenon and are gradually adopting this method.
There are a wide range of benefits enjoyed by companies that are engaging in sustainable business practices. Adopting environmental standards enhances a firm’s brand identity and improves its position on the competitive scene. With sustainable efforts enabling the reduction of waste and the increase of energy efficiency, companies have in turn found that implementing these practices saves them money and augment their reputation. Developing sustainability is the need of the hour and clearly indicates increase in profits.
Consumers too are reshaping their industry demands with sustainability top-of-mind, and there is perhaps no better example of this than in the packaging world. The packaging industry now looks to understand the complete lifecycle of a package – from the sourcing of its raw materials to its end of life.
New, innovative sustainable alternatives have replaced century-old business practices in an effort to improve firms’ sustainable efforts. Major retail outlets have released environmental scorecards, leading consumer packaged goods companies (CPGs) to partner with packaging suppliers who are able to report on, and are committed to improving, their environmental stand.
Packaging firms are always seeking innovative ways to demonstrate the sustainability of their products to consumer packaged goods companies (CPGs). Packaging companies have responded to these challenges by making sustainability a critical part of the way the company approaches its current and future business, combining sustainability with innovation in order to create high-quality packaging in a convenient, environmentally-responsible format.
Consumers want to understand how the product they are purchasing is sustainable. Whether it is the package’s physical appearance or the sustainability of its materials, consumers are seeking information to make better choices.
The environmentally conscious consumer wants to support a company that does more than produce a green product; they are looking for a company that also upholds certain green standards and principles. From the materials used to waste produced, the environmentally-conscious consumer wants businesses to have a calculated plan to improve the planet.
Uflex Ltd., the Indian packaging giant, is committed to reducing carbon footprint by aiming on biodegradable packaging materials which diffuse quickly and cleanly, by cutting the use of materials made from fossil fuels; primarily plastics and by adopting the advanced flexographic printing technique which provides environmental benefits through energy efficiency and reduced material consumption. Uflex believes that wherever possible all flexible packaging should be re-cycled in the same industry with its motto being ‘Tomorrow’s packaging using today’s waste’.
Indian packaging propels forward; set for Rs. 95,000 crore turnover by 2015
The Indian packaging industry is growing at a fast pace of 11% annually and is estimated to cross the 95,000 crore mark by 2015. The current value of the industry rests at 63,000 crore.
The packaging industry has organized to medium to large players as well as unorganized local players. The growth indicator for the Indian packaging industry is the food & beverage and pharmaceutical packaging sectors. The coming 3-4 years will witness the growth of the food processing industry in double fold, which will consequently lead to a huge demand for packaging material.
The plastic processing sector with the raffia segment has the most modern technology available and produces products of international standards. Approximately 1.2 million tonnes of polyethylene (PE) and polypropylene (PP) materials consumed by the raffia sector in India produce woven sacks, tarpaulins, FIBC (flexible intermediate bulk containers). The consumption growth of this sector from 2006-07 to 2009-10 is about 55%, i.e. 775 KT to 1.2 million tonnes. As of today, the Indian sector has become the 2nd largest raffia segment in the world.
Divulging from the traditional packaging demand, the changing life style and the societal pattern of life with the increasing number of working couples has hastened the growth for ready-to-cook and ready-to-eat foods. This has proved to be precursor for growth for the packaging industry.
The advances in food technology and packaging technology have made it possible to extend the shelf-life of ready-to-cook products. Ready-to-eat snacks which have a short shelf life are usually packaged using injection moulded plastic containers, plastic film/bag pouches or paperboard cartons.
Another emergent segment is the pet food packaging sector. The right combination of colours and smells are being taken into consideration so as to develop a packaging option that is most attractive to pets. Till now in India, tuber lamination machines, which are used in the manufacture of such packaging, have not been available. Now, companies have started manufacturing these, which has made easier for the Indian processors to manufacture such bags.
The packaging business does not experience cyclic tends owing to the nature if the industry. With an anticipated growth with the next five odd years in the domestic demand for packaging, this industry is gearing up to adopt scientific and functional packaging. Due to low manufacturing costs, India is fast emerging as the preferred place for packaging production.
To cater to the perceptive and sensitive customer of today the packaging industry is evolving in technical and scale terms so as to provide consumers with what they desire. The increasing numbers of health-conscious individuals show a preference for packed, branded products rather than the loose and unpackaged formats. India being dominated by the rural market, manufacturers are introducing low-priced goods in smaller pack sizes, which have proved to be extremely popular in smaller towns and villages.
Uflex, the packaging giant has always been committed to the industry by providing technical know-how and being the trend-setter in the flexible packaging industry. Being on the edge of innovation, Uflex endeavors to be the first to come up with advanced products that cater to the changing demands of the packaging industry.
Asia Pacific market propels growth for global plastic industry
Packaging industry to benefit from global plastic consumption
Industry experts are envisaging robust growth in the global packaging sector as global plastic consumption is expected to reach 297.5 million tons by 2015, according to a new report by market research firm Global Industry Analysts, Inc. The prime market driving this growth will be the Asia Pacific region with the likes of India and China making swift progress in the medium to long-term period. The factors influencing this growth are development of new age plastics, emergence of new applications, and the focus on green chemistry due to legislative and environmental requirements.
Accounting on advancement in packaging material science and mounting demand for product protection and stability, the global packaging industry is expected to further flourish. Bioplastic demand is also on the rise and is expected to grow, owing to novel applications in the packaging industry, primarily for food and beverages.
India is fast emerging as a giant in the packaging sector, more so in the flexible packaging sector as it is expected to touch Rs. 22950cr in 2015. Uflex Ltd., India’s largest flexible packaging company, is one such company that has set benchmarks in the packaging field backed on innovations that has worked wonders for the company and the industry alike. Some of the newer concepts that have been introduced in sustainable packaging segment by company include Eco-friendly flexi tube for cosmetic & paste, Slider Zipper with diaphragm and Non-plastic laminates for mouth freshener industry. These concepts have been well-appreciated and accepted in India and abroad.
Besides growing demand from the automobile, mining, chemical, construction and agricultural industries, the Asia-Pacific market is propelled by trends such as globalization, demand for durable products and urbanization. With rapid urbanization taking place in the region and globalization happening because of the lucrative opportunities that the APAC market offers, packaging sector is sure to grow by leaps and bounds in the times ahead.
