India’s largest flexible packaging company Uflex Ltd had invested $ 80 Million to set-up 30,000 tones polyester film unit in the Polish city of Wrzesnia. It was announced on the occasion of completion of one full year of operation of Uflex’s plant in Poland that since the commencement of its operation in July, 2012, the company has achieved revenues of USD 90 Million. The Polish plant is operating in its full capacity and is utilized to meet demands for flexible packaging solutions from within Poland and neighboring countries of Europe.
Uflex has plans for a major corporate revamp wherein the company plans to bring its overseas plastic film business under an umbrella company based in Dubai. Plans are also in the pipeline to list the said company overseas to part-finance future expansion plans.
Uflex has its presence in over 140 countries across the world with plastic film manufacturing facilities in India, Dubai, Mexico, Egypt, Poland and Kentucky, U.S. and packaging products facilities at multiple locations in India.
With the company’s vision to ‘Progress with Distinction’, Uflex brings a variety of value added flexible packaging material and sophisticated products like BOPET, BOPP and CPP, state of the art converting machines, rotogravure cylinders giving the company an edge over its competitors. The company also specializes in a wide variety of packaging machines like Vertical Form-Fill-Seal Machines, Horizontal Wrapping Machines, Special Purpose Machines, High Speed Pouch Making Machines.
In the last financial year 2012-13, plastic films contributed nearly 60% of the company’s revenue. Value added products contributed around 53% of the earnings having 40% share in the revenues. Uflex Ltd offers complete packaging solutions for a wide range of FMCG goods, dairy products, pharmaceuticals, pet food, sugar, automotive oil, lubricants and components.
Speaking to journalists who were touring the Uflex plant in Poland Mr. R.K. Jain, Group President for corporate finance and strategy stated: “We have pursued global investment in both greenfield and brownfield projects. This has been our consistent strategy. In this regard, we have successfully invested more than $500 million. This has given us the strength to address our dual commitment: To the investors, by creating incremental value on their investments, and to clients, by offering products that add value to their go-to-market strategy. The first full year of operations of Uflex in Poland saw a contribution of $90 million to the revenues. We also witnessed favorable demand trends for our innovative flexible packaging solutions. This saw an increased uptake from clients globally. Let me also add, the profit margins are showing improvement quarter-over-quarter during the current financial year.”
Uflex plans to consolidate its position as a truly Indian MNC. The strategy of global expansion includes capacity expansion and adding manufacturing lines for various product categories in existing and new locations to increase proximity to the markets and also to include the broad portfolio of value added services to clients.
In the coming three years beginning 2014-15 the company has plans to go in for a major capacity expansion to diversify their products range, grow revenues and improve margins.
For the financial year ended March 31, Uflex recorded 14% growth in consolidated net revenues at Rs.5,161 crore, against Rs.4,516 crore in the previous year. For the six-month period ended Sep 30, 2013 consolidated revenues were Rs.2,914 crore, against Rs.2,626 crore in the corresponding period last year.
While the higher revenue growth is attributed to new capacity added by the company since the manufacturing facilities in Poland and Kentucky in US commenced commercial production over the last year and also witnessing favorable demand trends for its innovative flexible packaging solutions, which saw increased uptake from clients globally whereas the profit margins are showing improvements quarter over quarter during the current year.
New Delhi:- Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company maintaining a sustained growth trajectory, has achieved a consolidated revenue for the September quarter of FY 2014 of Rs. 1516 crore as against Rs. 1250 crore for the same quarter last year.
On a sequential basis, the company registered growth in its quarter-on-quarter consolidated net revenue of Rs. 1516 crore and net profit at Rs. 46 crore, over consolidated net revenue and net profit figures of the preceding quarter that stood at Rs. 1398 crore and at Rs. 43 crore respectively in the April-June quarter (Q1 FY13-14).
For the six months period ended September 30, 2013, UFlex recorded Consolidated revenue at Rs. 2914 crore compared to Rs. 2626 crore in the same period in previous fiscal and net profit of Rs. 89 crore against Rs. 113 crore in the corresponding period last year.
While the higher revenue growth is attributed to new capacity added by the company since the manufacturing facilities in Poland and Kentucky in US commenced commercial production over the last year and also witnessing favourable demand trends for its innovative flexible packaging solutions, which saw increased uptake from clients globally whereas the profit margins are showing improvements quarter over quarter during the current year.
According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “The higher revenue growth has come on the back of increased manufacturing capacities at our disposal with the newly commissioned facilities in Poland and Kentucky which resulted in expanding our market reach and improving response time to the demand from the regions that these facilities address. Innovation and expansion are two aspects that Uflex is always eagerly pursuing and has ensured that we maintain our steady growth trajectory.”
For the full financial year ended March 31, 2013, UFlex had recorded a strong growth of 14% in consolidated net revenues at Rs. 5161 crore as against Rs. 4516 crore during a year ago, on the back of favourable demand trends globally.
Uflex’s strong manufacturing base in India, Mexico, Dubai, Egypt, Poland and Kentucky caters to global markets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle East and the South Asian Countries.
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 various product categories across existing and newer locations to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.
The company offers its flexible packaging products and solutions globally to clients including 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, Birla 3M, among others.
India’s $1 billion film and flexible packaging maker Uflex Ltd. has given a nod to a plan that includes expanding plants and establishing new factories in India and overseas.
The firm, one of the largest and fastest-growing flexible packaging firms in India, has drawn up a three-year growth strategy.
“The expansion plan … envisages opening new plants in new locations inside and outside India,” said President R.K. Jain, in an interview with Plastics News at the company’s headquarters in Noida, near Delhi.
“We have earmarked an investment of $400 million,” said Jain.
The move is aimed at doubling the company’s annual revenue to $2 billion in four to five years.
In the past three years, Uflex has opened plants in Egypt, Poland and the U.S., besides India, and expanded its Mexico facility.
“We have now consolidated and stabilized our operations in these markets and we are now ready for next phase of expansion,” he said. Uflex has not identified sites for the proposed plants. “We have no plant in the Far Eastern market, so that could be one of the regions on our radar,” he said.
Uflex controls about a 30-35 percent share of India’s $4 billion packaging industry.
In today’s age consumer goods manufacturers face tough competition as they all struggle to find methods to lure the consumer towards their products. Money is spent on marketing, advertising, publicity etc. New methods are devised to make the consumer use/try their product. It’s not an easy task, since no matter what you manufacture there is already an existing competitor present in the market.
In this time of cut throat competition, a number of manufacturers are turning to flexible packaging of their products. This form of packaging offers a variety of exciting marketing opportunities to the producer without increasing the cost of production. The packaging can be tailored to suit the merchandising requirements.
The 3D / 4D stand up pouches are a popular style of packaging. It is made by blending several layers of plastic with aluminum. This combination allows for a new and sophisticated printing and designing techniques to be used on the packet. This fact alone gives the manufacturers to design attractive logos, designs, graphics etc on their package which can catch the eye of the consumer.
Flexible style of packaging can be customized into practically any shape or size. They can also incorporate a variety of colors and styles. A different looking packet is bound to attract the eye of the consumer.
Flexible packaging allows the usage of same style of pouches to store different items. For instance the basic pouch can be used to store food, beverage and non-food items. With the addition of a special feature the pouch can be even more customized. For e.g., if a spout is added to the basic pouch it can be used to store liquids. The addition of a zipper and diaphragm will make the pouch more convenient to store and restore dry items.
Flexible packaging helps businesses and brands gain recognizition. The process is cheap so even the most cost conscious business can afford it. It can be customized to suit a brand so that businesses don’t have to end up choosing between short term gains and long term recognizition.
Uflex believes that the greatest improvement in the packaging industry is the flexible packaging. Many of the innovations that have become a part of the FMCG industry are products of the flexible packaging industry.
Uflex pushes for new innovations and trends thanks to the breakthroughs in plastic research and raw material enhancements.
The world renowned marketing guru Mr. Philip Kotler said that failure rate of new consumer products is as high as 80%. That means that on an average of 100 new consumer brands hitting the Indian stores only 20 of them survive. So what does it take for a product or stay on the shelf, or better still get picked up by the end consumer?
When a consumer visits a supermarket or a grocery store he searches for the item which are known to him or looks at items which he finds visually appealing. Visuals are the mainstay of promoting a product. The more attractive the package, better are the chances of it flying off the shelf into the shopping basket.
If there is a new product, a spiffy package may tempt the customer to try the product. Packaging is often the consumer’s first point of contact. Even in cases of known brands, a re-launch will require attractive packaging. Without that the re launch will be a guaranteed failure. But there are points to consider when designing the package:
- The design should be functional. That is to say that it should be easy to use and convenient
- It should protect the content it holds
- Allow for easy storage, transportation and distribution
- Provide the product information to the consumer
- Draw attention to itself amongst competition
No matter how good a product is, poor or drab packaging can keep it from selling. A good design should reflect the brand and personality of the company. Apart from a good looking package the manufacturer should also ensure that the shape and materials are equally appealing. Customers also look for honesty in the brands they choose to use. Simply said, they want to know whether the contents listed on the package are exactly what they are to find inside it. For this purpose, see through option in the package, if possible, could be provided in the package design and ensure that their packages look trustworthy. This can happen if the packages are made from the highest quality of materials and should be in tandem with the image of the company. For eg, a company promoting clean and green should also be recycling and innovative.
Uflex Ltd. ensures the production of highest quality of plastics, which are top of the order. Our in-depth R&D of the market and the needs of the consumers ensure that we manufacture and deliver only the finest quality to our customers. Top of the line designs and recyclable plastics have been our mainstay for last many years. Use of creative graphics and shapes has ensured that our packages hold the end consumer interest for a sustainable period of time.