Tuesday, December 27, 2011

Pharma and food industry to be the key growth drivers of Indian packaging industry

The Indian packaging industry today is growing steadily to emerge one of the key players in the global arena. The industry is not only evolving in terms of adapting to latest technology and packaging trends but today is one of the fast growing pegged to be $18.8 billion with a growth rate of more than 15 per cent per annum.
A number of Indian packaging firms today are innovating with packing trends for specialized products especially for drugs and chemicals. Along with traditional packaging techniques, these firms are evolving with software technologies to speed up the packing process; maintain quality of medicinal and pharmaceutical products which are produced on a mass scale.

With huge potential to innovate and experiment, Uflex Ltd too has entered the pharma packaging and is increasing making its presence felt in the segment. The company had earlier announced robust investment plans which included sizable investments in FMCG and pharma packaging. The company currently supplies flexible packaging materials to Pharma companies such as Ranbaxy, Procter & Gamble amongst other prominent pharma companies in India and abroad.

Pharma packaging the country has gained prominence owing to the increasing health consciousness to stay fit. The growing awareness of AIDS and other STDs has also led to the rise in demand for contraceptives and disposables syringe usages. Further, the need for specialized pharma packaging is another reason attributing to the industry growth.

In the years to come, the increasing health and hygiene conscious (to consume healthy food) will be the key growth drivers of the packaging industry and the players catering to these segments are expected to acquire a good market share.

Friday, November 4, 2011

UFLEX Ltd Q2 FY11-12 Net Profit at Rs. 57 crore


Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company has achieved the consolidated revenue for the September quarter of 2011 of Rs. 1097  crore as against Rs. 859 crore for the same quarter last year, up 28%. The higher revenue growth is attributed to new capacity expansion ,  & increased utilization. However, the consolidated net profit for the quarter ended 30thSept, 2011 has been lower at Rs. 57 crore  as against Rs. 203 crore for the same period last year.  The lower profit has been due to drop in gross margins of PET film and higher input & other operating costs during the said period.

For the six months period ended September 30, 2011, UFlex recorded lower net profit of Rs. 153 crore against Rs. 263 crore in the corresponding period last year stood at Rs. 2244 crore compared  to Rs. 1551 crore in the same period in previous fiscal, up by 45%.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “This quarter has not been a good quarter in terms of profitability due to pressure on margin of PET film both in domestic & international market but the new capacity expansion, higher capacity utilization and the growth in sales volume continue to be strong which is a reflection of strong fundamentals and strength of the company of its business. We are well positioned to pursue our strong growth potential and are moving forward with several development projects to further enhance shareholder value.”

UFLEX is continuing with its strategy of capacity expansion and adding manufacturing lines for new product categories across facilities in Mexico, Egypt, India, Poland & USA – not only to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.

In the first half of the current financial year (H1 FY11-12), Uflex Ltd completed the expansion of its facility in Mexico in the quarter ended June 30, 2011. This facility has trade pacts and part of NAFTA and thus access to a large market like North America. The expansion here was in two phases of 30000 MT capacity each, aggregating a total capacity of 60000 MT, and involving total capital investment of USD  110 million.

The company also commissioned an AL-OX coater and CPP plant  for Packaging films at its Egypt plant in 6th of October City, near Cairo. With this, UFLEX joins the list of handful manufacturers, capable of producing ALOX-coated films and CPP film. The new line of PET film of 30,000 MTs is expected to be commissioned by December, 2011.

The major portion of the expansion of manufacturing of Packaging products at Jammu has also been completed by September, 2011.
                                 
Earlier, Uflex had initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012.

The Company also announced plans to invest total USD 180 MLN to set up polyester film plants in
 Kentucky, US with an annual capacity of 60,000 metric tonnes. The 1st phase will start production by December 2012 having annual capacity of 30000 MTs.

Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET films) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.

The company's partial client list includes 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, and Birla 3M, among others.

About UFLEX Ltd
UFLEX Ltd (www.uflexltd.com) is the Bombay Stock Exchange (UFLEX: 500148) and NSE listed India's largest flexible packaging company with large manufacturing capacities of plastic film and packaging products providing end-to-end solutions to clients across more than  114  countries. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders, Gravure Printing, Lamination and Pouch formation.

Synonymous with flexible packaging industry in the country, UFLEX group has Gross annual revenue of Rs. 47 billion and Gross Capital Investment across the world of about Rs. 32 billion. UFLEX offers finished packaging of a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, desert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinates & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering components etc...

Thursday, October 20, 2011

Innovative Concepts Shaping the growth of the Packaging Industry

Unlike earlier when packaging used to be an afterthought for many manufacturers, the packaging industry today is witnessing number of changes, owing to increased consciousness amongst consumers as well as manufacturers.  More and more packaging companies today have moved towards environmentally responsible packaging which has become an integral part of their businesses.
As the packaging companies are focusing on sustainability initiatives through waste minimization and drifting towards environmentally responsible ‘green packaging,’ these trends are driving the product innovation in the packaging industry.
According to an international survey by Accenture, that included corporate decision-makers in the U.S., U.K., and China, out of the 247 businesses contacted, 72 per cent say that their sustainability initiatives fruitful and delivered results beyond expectations. This clearly reflects that with growing concern, consciousness and increased consumer awareness, packaging industry today is turning green.
What started as PlantBottle (30% of the bottle is plant based) by Coca-Cola has inspired peers and others in the industry for product innovation and companies across the globe, including the Indian flexible packaging giant Uflex have been making use of green and environment-friendly packaging materials.
Moving away from plastics, some of the common packaging materials that are now being used by packaging companies include:
Bamboo: Renewable and easy to grow, Bamboo is being increasingly used right from packaging to clothing in the western world. Due to its antibacterial properties and ability to naturally wick moisture, Bamboo has become a preferred material and is made use in shipping by top brands, including Dell.
Ecocradle: 100 percent biodegradable and renewable, Ecocradle is a great replacement to EPS, EPP and EPE foams made from oil or natural gas. A product grown from mushrooms, Ecocradle has become a preferred choice being non-toxic and non-disruptive to the environment.
Cornstarch Peanuts:  100% biodegradable and edible, cornstarch packaging peanuts are just amazing as they dissolve safely in water or can be thrown into the compost bin. Cornstarch peanut are used in packaging for not being a sustainable option but also because of their ability to not shrink in humid conditions and having a high density for rugged durability.
With packaging industry moving towards sustainability, packaging companies worldwide have been focusing on product innovation with the use of non-plastic and biodegradable packaging materials and at the same time maintaining the products look and feel.

Wednesday, September 14, 2011

Uflex Announces Dividend of 75%


Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company has announced dividend @ 75% (Rs. 7.50 per equity share) for the financial year 2010-2011. Standing on its long-term commitment to the shareholders, the company declared the dividend at the meeting held on September 10, 2011. The dividends will be dispatched to the members on September 21, 2011.
The announcement of the dividend is backed by company’s robust business growth and a 58% increase in its consolidated net profit before extra ordinary income for the quarter ended June 30, 2011 at Rs. 95.57 crore as against Rs. 60.50 crore for the same period last year.
The firm's consolidated revenue for the June quarter of 2011 stood at Rs. 1109.26 crore as against Rs. 660.63 crore for the same quarter last year, up 67.9%. The higher revenue growth is attributed to new capacity expansion globally and increased uptake of innovative flexible packaging solutions offered by the company across sectors.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “We have declared dividend of 75% as a part of our commitment of further strengthening our relationship with our valued shareholders. At Uflex, our focus has been to provide innovative end-to-end solutions to our discerning clients, which is reflected in our improved financial performance consistently over the years.  We are in a process of adding new facilities at the existing facilities and strengthening our global footprint by entering new markets and exploring better possibilities. Our growth is backed by the undeterred support of our clients and our employees who are a significant part of our growth story and we are happy to announce the roll-out of the dividend to the members.’’

Earlier this year, Uflex Ltd has completed the expansion of its facility in Mexico in the quarter ended June 30, 2011. This facility has trade pacts and part of NAFTA and thus access to a large market like North America. The expansion here was in two phases of 30000 MT capacity each, aggregating a total capacity of 60000 MT, and involving total capital investment of USD 109 million.

The company recently commissioned an AL-OX coater for Packaging films at its Egypt plant in 6th of October City, near Cairo. With this, UFLEX joins the list of handful manufacturers, capable of producing ALOX-coated films.
 
Uflex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012.

The Company had recently announced plans to invest total Rs 380-crore to set up polyester film plants in
 Kentucky, US with an annual capacity of 60,000 metric tonnes. The 1st phase will start production by December 2012 having annual capacity of 3000 MTs.

Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.

The company's partial client list includes 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, and Birla 3M, among others.

About UFLEX Ltd
UFLEX Ltd (www.uflexltd.com) is the Bombay Stock Exchange (UFLEX: 500148) and NSE listed India's largest flexible packaging company with large manufacturing capacities of plastic film and packaging products providing end-to-end solutions to clients across more than 108 countries. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders, Gravure Printing, Lamination and Pouch formation.

Synonymous with flexible packaging industry in the country, UFLEX group has Gross annual revenue of Rs. 47 billion and Gross Capital Investment across the world of about Rs. 32 billion. UFLEX offers finished packaging of a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, desert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinates & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering components etc...

Neeraj Atri,
Mavcomm Consulting,
+91 9811714871,

Friday, August 19, 2011

Outlook and Emerging Trends in Flexible Packaging Industry


The latest evolution in the packaging industry, Flexible Packaging has gained popularity worldwide for its benefits over rigid packaging. With benefits such as functional convenience in handling & transportation, cost effectiveness and brand protection from counterfeiting, flexible packaging industry worldwide is led by a strong growth.

Today, the flexible packaging industry globally is estimated to be nearly USD 160 billion and is growing at steady pace of 7 - 7.5% annually. The developed world regions of North America, Western Europe and Japan, which boast higher incomes per head, constitute the biggest markets for flexible packaging, accounting to about 70% of the share of the world’s total market. In developed nations the growth of the flexible packaging sector is estimated to be growing at a rate of about 2.5 - 3.5% whereas, in developing countries this growth is in the range of 8 - 12% annually. India in fact, historically is growing at 15-18% p.a.

A recent study by Pira International elucidated that while innovation will be the key driving the growth of the flexible packaging industry, the Asia Pacific region forecasted to lead global luxury packaging market growth with a compound annual growth rate (CAGR) of 7.1 percent in the period to 2015.

With constant technological evolutions and a stiff competition to keep up to the demands of the consumers, many international players are not able to sustain themselves. The competition from Asian Countries particularly from India and China is making it hard, even for some of the biggest players.

As far as India is concerned, there are still few companies in the organized sector in Flexible Packaging segment.  The small units in India face the heat of stiff competition from the biggest players and fail to keep up to the competition in terms of by deployment state-of-the-art latest technology and focus on providing innovative to meet customers’ needs.

With growing economic prosperity and higher incomes per head, the demand of packaging is significantly high in the developing countries.  India alone has the potential to grow at a rate 20 – 25% annually.

In a bid to keep up to the changing consumer demands, FMCG companies, retails chains are constantly revamping the packaging designs to woo customers. Manufactures, too, are continuously focusing on deployment of newer innovative, state-of-the-art technologies and attainment of operational excellence for productivity and efficiency improvements. 

Some of the recent flexible packaging innovations by Uflex in plastic film segment, include Green PET Film, rPET Film, Special Heat-sealable PET Film, Liquid Packaging PET Film, Direct Emboss able PET Film, Antistatic Twistable PET Film, Extrusion coatable BOPP Film, Retortable CPP Film. The company has also introduced new concepts in the packaging products segment which include Eco-friendly flexi tube for cosmetic & paste, Slider Zipper with diaphragm, 3D Bags, WPP Bags, Non-plastic laminates for mouth freshener industry.  Many of these pioneering concepts have been well-acclaimed in India and abroad.   

Going forward, Uflex plans to be one of the leading companies in the world in the flexible packaging space. In order to achieve this goal, Uflex, follows the strategy of ‘Growth with Innovation’ and runs its business with “Social and Environmental responsibility”.

Friday, August 5, 2011

UFLEX Ltd Q1 FY11-12 Net Profit Up 58% at Rs. 96 crores

Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company continues to grow from strength to strength registering a 58% increase in its consolidated net profit before extra ordinary income for the quarter ended June 30, 2011 at Rs. 95.57 crore as against Rs. 60.50 crore for the same period last year.
The firm's consolidated revenue for the June quarter of 2011 stood at Rs. 1109.26 crore as against Rs. 660.63 crore for the same quarter last year, up 67.9%. The higher revenue growth is attributed to new capacity expansion globally and increased uptake of innovative flexible packaging solutions offered by the company across sectors.
According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “The higher revenue growth has come on the back of traction in demand and corresponding manufacturing capacities across our facilities in Egypt, Mexico, Dubai and India. Uflex is continuously adding manufacturing lines for new product categories at the existing facilities to further strengthen its foothold in the flexible packaging market globally which is evident from our growing revenues & profits year after year.”
UFLEX is currently undertaking expansion plans across its present manufacturing locations and expanding in to new geographies with facilities coming up in Poland and Kentucky, US.
With plans of new manufacturing facilities in place and corresponding investments UFLEX is all set to achieve the next milestone of touching the $1 billion revenue mark by FY 2012 – the first company in the flexible packaging sector in India to achieve this milestone.
Uflex closed the financial year ended March 31, 2011 on a strong note registering an exponential growth of 266% increase in its consolidated net profit at Rs. 695 crore as against Rs. 190 crore for the corresponding period last year, on the back of strong demand trends globally. For the Financial Year ended March 31, 2011, UFlex recorded net revenue at Rs.3410 crore compared to Rs.2314 crore in the same period in previous fiscal, up by 47%.
Uflex's strong manufacturing base in India, Mexico, Dubai and Egypt caters to global markets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle East and the South Asian Countries.
Expansion Plans
Uflex completed the expansion of its facility in Mexico in the quarter ended June 30, 2011. This facility has trade pacts and part of NAFTA and thus access to a large market like North America. The expansion here was in two phases of 30000 MT capacity each, aggregating a total capacity of 60000 MT, and involving total capital investment of USD 109 million.
The company recently commissioned an AL-OX coater for Packaging films at its Egypt plant in 6th of October City, near Cairo. With this, UFLEX joins the list of handful manufacturers, capable of producing ALOX-coated films.
As part of the expansion plans in Egypt, Uflex Ltd is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35,000 TPA; 30000TPA of PET (Polyester) and 12000TPA of CPP films aggregating to total capacity of 77,000 TPA. The company’s planned investments in Egypt are pegged at US$ 135 million.
The first line of this expansion involved adding capacities in BOPP films. The second line of setting up facilities for CPP films, work at the new 12,000-metric-tons per year facility, state-of-the-art Cast Polypropylene (CPP) film line has been commissioned and has become operational whereas the third line to produce 30000 TPA of PET film will be operational by Dec., 2011 / Jan., 2012.
Uflex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012. 
The Company had recently announced plans to invest Rs 380-crore to set up a polyester films plant in Kentucky, US with an annual capacity of 30,000 metric tonnes. The US facility will start production by December 2012.
Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.
The company's partial client list includes 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, and Birla 3M, among others.

Tuesday, July 19, 2011

UFLEX Commissions Al-Ox Coater, CPP-film line at Egypt Plant


 - - - Planned investments in Egypt pegged at US$ 135 million for BOPP films, PET and CPP films
- - - The first line to produce 35000TPA of BOPP film commenced operations
- - - Second line to produce 12000 TPA of CPP film also commenced operations and third line to produce 30000 TPA of PET film is under implementation & expected to commence by Dec., 2011 / Jan., 2012.
Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company has commissioned an AL-OX coater for Packaging films at its Egypt plant in 6th of October City, near Cairo. With this, UFLEX joins the list of handful manufacturers, capable of producing ALOX-coated films.
As part of the expansion plans in Egypt, Uflex Ltd is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35,000 TPA; 30000TPA of PET (Polyester) and 12000TPA of CPP films aggregating to total capacity of 77,000 TPA. The company’s planned investments in Egypt are pegged at US$ 135 million. The first line of this expansion involved adding capacities in BOPP films.
The second line of setting up facilities for CPP films, work at the new 12,000-metric-tons per year facility, state-of-the-art Cast Polypropylene (CPP) film line has been  commissioned and has become operational whereas the third line to produce 30000 TPA of PET film will be operational by Dec., 2011 / Jan., 2012.
According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “Setting up of the AL-OX coater for Packaging films at the Egypt plant is in sync with our plans to add manufacturing lines for new product categories at the existing facilities. By adding new facilities at our plants we aim to strengthen our foothold in the flexible packaging market globally and further growing our revenues & profits and enhancing values in every respect.”
The site of the plant already houses an 8.7 meter wide, 500-mpm, state-of-the art Biaxially Oriented Polypropylene (BOPP) Film plant, which is one of the world’s largest packaging film lines, capable of turning out 35,000 MT/year, and a plasma enhanced high-barrier metallizer that were commissioned in 2010. The operation has recently been certified as conforming to ISO 9001:2008 standards.
Under installation at this location are also an 8.7 meter wide, 500-mpm Biaxially Oriented Polyester (BOPET) film line and another plasma enhanced metallizer that will be fully operational within 2011. The ALOX coater is the Group’s first such installation and will further consolidate UFLEX’s position in the global flexible packaging industry.
The ALOX coater applies a thin and highly transparent coating of aluminium oxide on packaging films that gives the materials extremely high moisture and gas barrier properties that rival those of aluminum foils and metallized films. It is the only truly high-barrier flexible packaging material available that is transparent and allows the packaged product to be clearly visible. This not only provides a big marketing plus but also facilitates operations like optical scanning/inspection and metal detection during and after the packaging process.