UFlex Limited, India’s leading flexible packaging company, has reported a notable increase in its financial performance for the first quarter of fiscal year 2025. The company’s unaudited consolidated net revenue reached INR 36,825 million, reflecting a 12.3% year-on-year increase and a 5.3% rise compared to the previous quarter. The operational EBITDA also saw significant growth, reaching INR 4,652 million, a 45% increase from the previous year and a 2.2% rise from the previous quarter.
UFlex’s growth in Q1 was driven by a surge in demand for flexible packaging and an upturn in the global packaging films market. The company reported a consolidated sales volume of 158,022 MT, a 10.4% increase year-on-year and a slight 0.1% increase quarter-on-quarter. Sales of packaging films rose by 13% year-on-year, with the company achieving its highest-ever sales volume in aseptic packaging for a quarter.
The company also made strides in expanding its production capabilities. UFlex commissioned a new 6.5-meter-wide Cast Polypropylene (CPP) film line in Russia, which will add 18,000 metric tons per annum to its capacity. This new facility complements existing operations, including a Biaxially Oriented Polyethylene Terephthalate (BOPET) film line and a plasma-enhanced metallizer.
Chairman and Managing Director Ashok Chaturvedi highlighted the company’s strong quarter, noting, “We had a strong quarter, especially in the packaging films and solutions segment where we have seen both year-on-year and quarter-on-quarter growth in volumes coupled with growth in margins.” He also mentioned upcoming projects, including a 216,000 MTPA PET chips plant in Egypt and an 18,000 MTPA CPP line in Mexico, aimed at enhancing UFlex’s production capabilities and sustainability efforts.
The company is also focusing on sustainability, with a new Power Purchase Agreement for renewable energy to reduce carbon emissions by 19,000 tCO2e. Group CFO Rajesh Bhatia emphasized the successful integration of the PET chips plant in Panipat and the expected impact of the new plant in Egypt, stating, “The planned commissioning of the PET chips plant in Egypt later in FY25 will make UFlex even more self-sufficient in its raw material requirements. We are at the cusp of witnessing stupendous optimisation in recycled content across various segments of the packaging industry and are on the road to becoming a market leader in this segment in the immediate future”.