UFlex Ltd announces a ₹700+ crore investment to expand its Dharwad plant adding 54,000 MTPA packaging film capacity. Discover how this fuels their global growth strategy.
In a significant move to strengthen its manufacturing muscle UFlex Ltd a leading global flexible packaging company has announced an investment of over ₹700 crore to expand its packaging film production line in Dharwad, Karnataka.
This strategic expansion will add 54,000 Metric Tonnes Per Annum (MTPA) of new capacity at the Dharwad facility. Once completed it will elevate UFlex’s total global packaging film capacity to 690,160 MTPA up from the current 636,160 MTPA.
A Strategic Push for Growth
Rajesh Bhatia, Group President and CFO of UFlex Ltd outlined the rationale behind the investment. “We plan to invest over Rs 700 crore to expand our packaging film manufacturing line in Dharwad, Karnataka,” Bhatia stated. “This project will add 54,000 MTPA of new capacity significantly strengthening our portfolio and enhancing our ability to serve customers with scalable, high-quality packaging solutions.”
This expansion is part of a broader, aggressive growth strategy by the company. Bhatia highlighted several other key projects underway across the globe:
- A recently completed expansion in Sanand, Gujarat, that increased aseptic packaging capacity from 7 billion to 12 billion packs per year.
- A new 12-billion-pack aseptic plant in Egypt.
- An 80-million WPP bags line in Mexico.
- An approximately 40,000 MTPA recycling facility in Noida.
Financial Impact and Future Outlook
The company expects these combined investments to start contributing to its revenue from the financial year 2027 (FY27) with their full impact being felt in FY28. The financial upside is substantial.
“We expect these investments to generate nearly ₹3,000 crore in additional revenue once fully operational,” Bhatia commented. This new revenue stream will build upon the company’s strong foundation having reported consolidated revenue of over ₹15,000 crore in FY25.
Riding the Wave of Positive Market Trends
Bhatia also pointed to favorable regulatory and environmental trends that support this expansion. He noted that the anticipated GST rationalisation is expected to boost overall consumption thereby increasing demand for packaging.
Furthermore, India’s Extended Producer Responsibility (EPR) framework is driving demand for recycled packaging materials an area where UFlex is investing directly through its new Noida recycling plant.
“All these developments together create a strong foundation for ongoing growth across our businesses,” Bhatia said expressing confidence in the company’s trajectory. This series of expansions positions UFlex to not only meet rising demand but also to lead in the evolving, sustainability-focused packaging landscape.
