UFLEX Ltd Q4 FY2012-’13 Consolidated Net Revenue at Rs. 1240 crore; and Net Profit at Rs. 41 Crore

New Delhi, May 30, 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 March quarter of 2013 of Rs. 1240 crore as against Rs. 1175  crore for the same period last year, up 5.5%  whereas the sales volume has grown by 13% due to availability of additional capacities at the new manufacturing facilities that commenced operations. However, the consolidated net profit for the quarter ended March 31, 2013 has been lower at Rs. 41 crore as against Rs. 51 crore for the same period last year due to continued downward pressure on the operating margins.

For the full financial year ended March 31, 2013, UFlex recorded a strong growth of 14% in consolidated net revenues at Rs. 5161 crore as against Rs. 4516 crore for the last year.  The net profit for the full financial year (FY 2012-13) has been lower  at Rs. 190 crore against Rs. 255 crore in the last year, a decrease  of 25%.

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 completed the expansion in Poland successfully during July, 2012 and in Kentucky, USA during January 2013. Collectively the two facilities involved investments of about $150 million.   

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “With growing number of markets in our fold and manufacturing facilities at important commercial centres of the globe gives us the necessary edge to serve our clients with quality products and services. Our direct near-shore presence to clients has enabled us to serve them promptly which is important in the dynamic business environment today. This has ensured long term relationships with customers globally and reflects well in our growth trajectory.”

Uflex's strong manufacturing base in India, Mexico, Dubai, Egypt, Poland and USA 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. 

UFLEX Ltd Q3 FY 2013 Net Revenue Up 15% at Rs. 1295 crores

New Delhi:- Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company, has registered a growth of 15% in its consolidated revenue for the quarter ended December 31, 2012 at Rs. 1295 crore as against Rs. 1129  crore for the same period last year. Its consolidated net profit for the Dec. quarter of FY 2013 stood lower at Rs. 36 crore, against Rs. 51 crore for the same period last year.

For the nine months period ended December 31, 2012, UFlex recorded lower net profit of Rs. 149 crore against Rs. 205 crore in the corresponding period last year, while net revenue of the company for the nine months ended Dec.. 31, 2012 stood higher by 19% at Rs. 3940 crore compared Rs. 3320 crore in the same period in previous fiscal. 

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 completed the expansion in Poland successfully during July, 2012 and in Kentucky, USA during January 2013. Collectively the two facilities involved investments of about $ 150 million.    

According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, “The market conditions for the plastic film have been unfavourable during the current financial year, causing having downward pressure on prices & margins thereof.  However, conditions have started showing some improvement from February, 2013 and there are hopes that it will show up better in the coming time.  We are quite confident that FY 2013-14 would witness far better results.

Our three pronged strategy of growth with Innovation, proximity to customers with focus on operational excellence and better quality & quick service and deliveries to customers is the key to our success story that also reflects in the company’s top line growth. We will continue with our endeavors to become one of the largest packaging companies in the globe delivering value to our customers with best-in-class products and services; and incremental return on investments to investors.”

Uflex's strong manufacturing base in India, Mexico, Dubai, Egypt, Poland and USA 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.

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.