Uflex eyes revenue of $2 bn in 4-5 years

Ashok Chaturvedi
CMD, Uflex Limited talks to Sanjeev Sharma 

Flexible packaging company, Uflex is targeting to double revenue from the current $1 billion in the next 4- 5 years. Ashok Chaturvedi, Chairman and Managing Director, Uflex Limited, says the trend of shopping malls and expansion of modern organised retail is driving the demand for packaged products.

Q: What is the current market size of flexible packaging industry in India and the way forward?

A. With the change in demographics, lifestyle too is undergoing a paradigm shift. The advent of organised retail has given an unprecedented fillip to the packaging industry. Traditional retail in India is carried out through local kirana shops with nearly 75- 80% of items still being sold in loose form, thus falling under the unorganised domain. 

The flexible packaging market is witnessing a growth in demand from end-use industries such as personal care, healthcare, pharmaceuticals, and food and beverages. The Indian flexible packaging industry has been growing at the rate of 15-17% annually over the past five years or so. It is expected to be a $32 billion industry in 2020. Consumer goods industry is the biggest user of flexible packaging, which, we believe is still quite under-penetrated in India as compared to developed countries.

Q: What are your revenue targets?

A: As India’s largest flexible packaging company and an emerging global player, we always believe in increasing our proximity to customers and foster innovation to create differentiation to the best advantage of our clientele by offering complete packaging solutions. We are targeting to double our revenue from the current $1 billion in the next 4-5 years. 

Trends reveal that barely 20-25% consumer goods are sold in packaged form. 

Q: What has been your growth strategy?

A: Our business strategy is inextricably woven around sustained growth through innovation to create value-added differentiation. We ensure the least possible time lag between developing a solution and launching it in the market to reap the first move advantage. Extensive sales and service network across the globe and the ability to process any quantum of order and ensuring just in time deliveries gives our clients an assurance of business continuum with practically no downtime. We focus in operational efficiencies that enhance our competitive position in the global market besides optimising the costs and resources.

Q: What is your view on the Make in India initiative?

A: We have state-of-the-art manufacturing facilities in Noida, Jammu and Malanpur. Uflex has been incessantly contributing to enhance the image of Brand India for over three decades now. Whatever we produce, be it for domestic consumption or for exports, is focused on quality.

With unwavering focus on innovation to create value-added differentiation, we deploy latest technology and processes. Uflex completely echoes the government’s Make in India ethos. Our upcoming aseptic packaging plant in Sanand, Gujarat, reaffirms our commitment towards Make in India.

Q: What are the details of the upcoming Gujarat project?

A: The commissioning work of the aseptic packaging plant for packing liquid products is going on in full swing and the plant will be commercially operational in March/April 2017. At Sanand, Gujarat, we have a land parcel of around 72 acres. Since we have enough area at hand at a strategic location, we might also plan expansion of manufacturing facilities of our existing businesses. The aseptic packaging plant is being set up with a capex of Rs 580 crore in the first phase. This facility will employ around 250 people in the first phase. 90% of the output of 1st phase from this factory will cater to the domestic demand. With the new aseptic packaging plant for packing liquid products, Uflex will complete the entire bouquet of product offering which currently spans across solids, semi-solids, pastes, gels, viscous fluids, powders and granular materials.