Uflex, India’s largest multinational flexible packaging company, has declared its earnings for the first FY quarter. Consolidated revenue is reported to have grown by 3.6% to Rs1,982cr in Q1, while EBITDA rose by 8.7% to Rs277.3cr year-on-year.
On a standalone basis, the revenue increased by 2.23% to Rs1,051cr and EBITDA jumped by 11.7% to Rs132.6cr. The consolidated net profit dropped by 3.6% year-on-year to Rs90.7cr, due to higher tax provision.
CEO Rajesh Bhatia said: “This quarter, while our total production volume was almost constant at 100,814 MT year-on-year basis, packaging production volume was up by 4.8% year-on-year to 21,018 MT.
“To optimally use our film line capacity, we are shifting one of our BOPET film manufacturing lines from UAE to Russia, since the production from this line was already largely dedicated to markets in Russia and CIS countries. This will enable us to serve customers locally, as well as a substantial cost saving of freight, energy and import duties.”
Chairman and managing director Ashok Chaturvedi said: “Uflex has progressed exponentially in the last few years with its products, technological and engineering capabilities, keeping in mind the evolving needs of the packaging industry, along with environmental needs. We have been striving hard and making all possible efforts to provide our customers with innovative and sustainable packaging solutions that are also economical.
“To ensure that we are future-ready and have a better outreach of sustainable solutions to our clients located globally, we are scaling up our operations internationally. Our ongoing investment in Hungary, Nigeria and Russia to set up manufacturing facilities for packaging films attests our commitment to deliver packaging excellence to each of our customers.
“As leaders in the industry, we are cognisant of the challenge that noise around plastic poses. To address the issue of this rather solvable problem, Uflex is working on a range of revolutionary plastic films that will be bio-degradable as well as recyclable by nature, thereby reducing plastic waste going into landfill and saving our planet.”
The following products have been listed by Uflex as key launches and updates intended to change the way the market functions.
A brick shaped all-panel-registered 4D bag with a handle and re-closable option is an ideal packaging solution for the FMCG industry. It was launched in the Middle East and Sri Lanka. The revolutionary product combines the stand-ability feature of a rigid packaging with the functional advantages of conventional flexible packaging. The handle and re-closable option provide convenience and ease of use. Priced between both rigid and conventional flexible bags, the 4D bag is finding many takers in the rice, coffee, tea, detergents and pet food industries.
Water-based inks for paper printing of flexible packaging, as well as paper and board segments for food wraps and paper beverage cups, was launched by Uflex Chemicals Business. This product, which comes with excellent printability and good scuff and water repellent properties has successfully qualified for brands such as CocaCola, PepsiCo and Subway.
Flexseal HSL-WBHS 18, a heat seal lacquer, is a water-based dispersion designed to give good adhesion and heat-sealing properties on a range of substrates like paper, foil, metal and other polar substrates. It can achieve the appropriate coefficient of friction required for high-speed packing lines. Flexseal HSL-WBHS series heat seal coatings are water-based and balance low seal initiation temperature with high seal strength. This latest innovation by Uflex Chemicals Business is compliant with FDA regulations in direct food contact applications.
The Fully Automatic Collar Type Twin Head Form Fill and Seal Machine UFLEX SUPER CTSD is a locally designed continuous motion machine for the efficient packing of various products such as tea, sugar, spices, cookies, snack foods, wafers, detergent, pulses, rice, flour, sweets in center-seal pouches sized 10gm-100gm. The unsurpassed accuracy and speed of the machine to pack up to 280 pouches per minute, while utilising less space, capital and maintenance cost, leads to higher output and productivity. This machine will cater to domestic as well as overseas markets.
Uflex are the only manufacturer of the CT150C Vertical Form Fill and Seal packing machine in India. The machine addresses the challenge of packing snacks that are light in weight, yet not freefalling, such as wafers. The machine, that was commercialised this quarter, can pack 75-85 pouch per minute.
Uflex have also manfucatured a new Pick Fill Seal (PFS) machine. PFS8 is a fully automatic intermittent motion machine with eight station rotary indexing and a filling and sealing mechanism to pack granules snacks in pre-formed pouches, centre-seal pouches, standup pouches and zipper pouches. The earlier version of the packaging machine with ten stations was limited to the size of products it could pack. However, PFS8 is able to pack bigger pouches required for family packs. It is useful for the packing of products such as pesticides, pet food, snacks, detergent, agricultural seeds etc., and has already found purchasers in India.
In order to be commercialised and made available outside India by Q2 of this financial year, BBM-12 will make Uflex the only India-based manufacturer and one of the two globally to build a converting machine for bigger packages. The machine is ideal for making bags of size 10kg or less for products such as pet food, rice, flour, and can produce up to 25 bags per minute. Currently under trial, the machine can make centre-seal bags, side gusseted bags and side gusseted truncated bags.
The recently launched UV LED Inks for narrow web and sheeted business segments by Uflex Chemicals Business generated substantial revenue this quarter, increasing its sales by 70% growth and adding key customers in the African market to its portfolio.
Finally, operations were commenced on FlexFilms Mexico plant’s new and second AlOx line, with maximum width of 1,615mm. Besides providing good clarity to the film, the line will offer better barrier uniformity across the web width.
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