UFlex Total Net Revenue has soared to INR 36,825 million in Q1 FY25, showcasing significant growth. This represents a 12.3% increase year-on-year (YoY) and a 5.3% increase quarter-on-quarter (QoQ).
Impressive Growth in Packaging Films
UFlex Total Net Revenue saw a notable contribution from the packaging films segment. The consolidated sales volume for the quarter was 158,022 metric tons (MT), up by 10.4% YoY. Packaging films sales volume increased by 13% YoY, reflecting robust demand in the global market. The operational EBITDA for the quarter stood at INR 4652 million, marking a 45% increase YoY and a 2.2% increase QoQ.
Key Projects and Developments
During the quarter, UFlex commissioned a new Cast Polypropylene (CPP) packaging film line in Russia through its subsidiary Flex Films Rus LLC. This new line, with an installed capacity of 18,000 MTPA, complements existing facilities and strengthens the company’s production capabilities.
Mr. Ashok Chaturvedi, Chairman and Managing Director of UFlex, stated, “We had a strong quarter, especially in the packaging films and solutions segment. Our PET chips plant in Panipat, India, commissioned in March 2024, has achieved 65% capacity in its first quarter of operations. The demand for packaging films is witnessing a revival across global markets.”
Strategic Focus on Sustainability and Expansion
UFlex continues to prioritize sustainability, focusing on Post-Consumer Recycled (PCR) flexible packaging. The company is developing innovative solutions in flexible MLP and PCR applications, underscoring its commitment to environmental responsibility.
Looking ahead, UFlex plans to commission several key projects in FY25, including a 216,000 MTPA virgin PET chips plant in Egypt and an 18,000 MTPA CPP line in Mexico. These projects are expected to drive significant growth in the company’s top line and EBITDA, contributing to long-term value creation for stakeholders.
Investments in Renewable Energy
In line with its sustainability goals, UFlex has entered into a long-term Power Purchase Agreement with Onevolt Energy Private Limited for renewable power for its manufacturing facilities in Noida-NCR. Additionally, a PPA with Amplus Phoenix Private Limited will supply solar power to its packaging films plant in Dharwad, Karnataka, reducing carbon emissions by 19,000 tCO2e.
Mr. Rajesh Bhatia, Group CFO of UFlex, commented, “Our aseptic packaging business recorded the highest-ever quarterly production and sales volumes. With the debottlenecking in our Sanand plant, we expect strong volume growth from Q4 FY25 onwards. The backward integration strategy with our PET chips plants will enhance self-sufficiency in raw materials.”
Continued Growth and Innovation
UFlex Total Net Revenue remains committed to innovation and excellence in the packaging industry. With a multicultural workforce of over 10,000 employees, the company delivers value-added and sustainable packaging solutions to clients worldwide. UFlex‘s advanced manufacturing facilities across India, UAE, Mexico, Egypt, USA, Poland, Russia, Nigeria, and Hungary, enable it to serve Fortune 500 clients in over 150 countries.