Indian flexible packaging company Uflex is planning to invest Rs5.5bn ($86.2m) to set up a new aseptic packaging plant in Sanand, in the state of Gujarat.
The move is in line with the company’s strategy to set up new plants for developing and manufacturing new and innovative packaging products for its clients at the most competitive price points.
The proposed plant will be established in a phased approach to produce liquid packaging.
This facility will employ 250 people in phase I, with plans to hire close to 3,000 people on completion of all the phases.
Expected to become operational by April 2017, the plant will be capable of producing close to seven billion packs annually. The packs from the plant will be used to package energy drinks, milk and juices.
More than 90% of the plant’s output will be supplied to the domestic market.
Uflex said in a statement: "Uflex’s agenda of consistent global expansion and consolidation of its position as a truly Indian MNC (multinational corporation) is reinforced by its strategy of capacity expansion and adding manufacturing lines for various product categories across existing and newer locations."
The company has generated Rs16.05bn ($251.6m) in consolidated net revenue for the quarter ended 30 June, when compared with Rs15.36bn ($240.8m) for the same period last year.
Its consolidated net profit for the quarter has increased by 19% to Rs760m ($11.91m) as against Rs640m ($10.03m) for the same period last year.
Uflex manufactures and sells various flexible packaging products and solutions across the globe.
The company’s products include in-house polyester chips, BOPET/BOPP/coated/metalised/CPP films and packaging accessories, including zip locks, pilfer proofs, resealable tapes, pourers.