UFLEX LTD Q1 FY 2014 CONSOLIDATED NET REVENUE AT RS. 1398 CRORE AND NET PROFIT AT RS. 43 CRORE

New Delhi: August 6, 2013 – Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India’s largest flexible packaging company, has registered the consolidated net revenue for the quarter ended June 30, 2013 at Rs. 1398 crore as against Rs. 1376 crore for the same period last year.

The firm’s consolidated net profit for the June quarter of FY 2014 stood at Rs. 43 crore as against Rs. 56 crore for the same quarter last year. However, sequentially, the revenue and net profit for quarter ended June, 2013 viz – a – viz quarter ended March, 2013 has grown by 13 % and 5 % to Rs. 1398 crore (Revenue) and Rs. 43 crore (Net Profit), respectively.

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. Uflex had added capacities from the newly commissioned manufacturing facilities as part of its expansion in Poland and Kentucky during the previous financial year. Collectively the two facilities involved investments of about $150 million.

The polyester films plant in Kentucky, in the US has annual production capacity of 30,000 metric tonnes, and similar capacity is available in Wrzesnia, in Poland. With the new manufacturing facilities and other expansions in place, UFLEX is all set to achieve the next milestone of $2 billion revenue mark over the next couple of years.

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “The higher revenue growth has come on the back of increasing manufacturing capacities across our facilities in Egypt, Mexico, Dubai and India, in addition to the new facilities in Kentucky and Poland to cater to the increasing demand trends. Innovation, expansion and harnessing growth opportunities at the right time has been the key to our strong foothold in the flexible packaging market globally.”

For the full financial year ended March 31, 2013, UFlex had recorded a strong growth of 14% in consolidated net revenues at Rs. 5161 crore as against Rs. 4516 crore during a year ago, on the back of favourable demand trends globally.

Uflex’s strong manufacturing base in India, Mexico, Dubai, Egypt, Poland and Kentucky 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’s agenda of global expansion and consolidation of its position as a truly Indian MNC (Multinational Corporation) is reinforced with its strategy of capacity expansion and adding manufacturing lines for various product categories across existing and newer locations to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.

The company offers its flexible packaging products and solutions globally to clients including 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, Birla 3M, among others.

Flexible Packaging & Food Safety

‘It’s all in the packaging’ is a phrase most manufacturers swear by. Unless the consumer tastes the end product, he wouldn’t know the quality. But to convince him to pick up that packet from the supermarket shelf, a good and attractive packaging plays a major part.

The role of flexible packaging isn’t limited to just attract the consumer. It is also meant to protect the food items inside.  Protection from contamination and deterioration throughout its shelf life is also an integral part of good flexible packaging. It must also be informative of the nutrients and ingredients and other details in compliance with the labeling and packaging regulations.

Some of the basic features considered for good flexible packaging are:

· Compatibility with the product and storage conditions

· Protection of the product from deterioration of chemical, physical or biological nature

· Appropriate packaging intended for the final use of the product (e.g. - Microwavable packaging, resealable packets etc)

· Ability to sustain the stress of production and distribution - won’t crack/break or degrade

No material is inert. When a material like plastic is put into contact with edible products there will be a release of substances from the plastic into the edible content. The release will depend on 3 factors namely:

-The types of material

-Type of edible content

-Contact conditions

However, the release or ‘migrants’ as they are known into the food content doesn’t not render it toxic or dangerous to consume   because a shield layer of plastic which is food grade is used while forming the packaging material.  Even the   migration is taken into account by regulators while approving a new food contact substances. Studies on toxicology are carried out by regulators prior to approval.

Uflex Ltd., India’s largest flexible packaging company has been offering amongst others, the food packaging solutions for more than two decades now.  The company offers packaging materials for food products made out of BOPET (Biaxially Oriented Polytthylene Terapthalate), BOPP (Biaxially Oriented Polypropylene) and CPP (Cast Polypropylene) films. The manufacturing of these products are in strict adherence to the international standards and norms. Flexible packaging at Uflex is known for excellent chemical resistance, strength, protection against moisture and odour and dimensional stability.

Keeping up with the times and the dynamics of the packaging industry Uflex has been a pioneer in setting benchmarks for delivering innovative packaging concepts and to ensure the safety and viability of the packaged food in its life cycle.