The company, which has packaging capacity of 54,560 tonne per annum (TPA) plans to increase it to 79,000 TPA in two years.
The company has manufacturing facilities at Jammu, Noida and Gwalior in India besides plants in Mexico and Dubai. It is planning to start production at its Egypt unit in July.
The new unit is being commissioned as part of a plan to increase the company's earnings from Rs 2,296 crore in 2009-10 to about Rs 4,500 crore by 2013.
The Rs 15,000-crore domestic flexible packaging industry is growing at around 15-17% owing to the increased demand, especially in FMCG and food segments. We want to become a preferred supplier of packaging materials not only in India but across the globe. We are also eyeing a $1-billion (Rs 4,500 crore) turnover by FY 2013. That is not possible without increasing our presence and capacities in India and abroad, said Ashok Chaturvedi, chairman and managing director, Uflex.
The growth of organised retail segment and brands have increased demand for flexible packaging products, especially in FMCG and pharma segments, he added.
Uflex has an existing annual capacity of over three lakh tonne of flexible packaging, including both plastic films and laminates at its three facilities.
Chaturvedi said while the domestic packaging industry was growing by 15-17% per annum, the global market growing at 5% to 8% annually, is five times larger, pointing to the scope for more international customers.
International revenue will account for nearly 60% of our top line by 2013. This will also add to our margins, which are expected to go up to 22% (currently 20%), he said.
The company supplies flexible packaging materials to clients like PepsiCo, Nestle, Gillete, Ranbaxy, Procter & Gamble, Britannia and other fast moving consumer goods and pharma companies in India and abroad.
Packaging is the worlds third-largest industry after food and energy or petrochemicals. The market volume of the Indian packaging industry stands at about Rs 77,570 crore.
(The trip was sponsored by Uflex)