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UFlex Ltd, India’s largest integrated flexible packaging and solutions company, has proposed adding 54,000 metric tonnes per annum (MTPA) of capacity at Dharwad, Karnataka, with a total capital expenditure of Rs 715.4 crore. The new capacity is planned for commissioning during the financial year (FY) 2027–28 (April–March), strengthening the company’s domestic manufacturing capabilities and supporting long-term growth in the packaging films segment.
In an announcement released alongside its July–September 2025 quarterly financial results, the company stated that the proposed expansion aims to address the rising demand for packaging films in India. The UFlex Dharwad plant currently has an installed cumulative capacity of over 63,000 MTPA of packaging films, comprising 45,000 MTPA of BOPET (Biaxially Oriented Polyethylene Terephthalate) film and 18,000 MTPA of CPP (Cast Polypropylene) film.
In addition to BOPET and CPP facilities, the company also operates metallized film units with a cumulative capacity of 30,000 MTPA across three metallizer lines. Post-expansion, the Dharwad plant will have a total production capacity of 100,000 MTPA of various flexible packaging films, revealed Rajesh Bhatia, Group President and Chief Financial Officer, UFlex Ltd, during an analyst call last week.
“We have also announced a new packaging film line at Dharwad, which was part of our commitment when we established the first line there, as per our agreement with the state government that entitled us to certain tax concessions based on a defined level of investment. To meet that commitment, we are adding another line. This time, it is a BOPP facility with a capacity of 54,000 tonnes a year,” said Rajesh Bhatia, Group President and Chief Financial Officer, UFlex Ltd, in a recent analyst call.
Global expansion
During the July–September quarter, the company incurred total capital expenditure of approximately Rs 490.8 crore. This was primarily allocated to three key projects: US$ 13.2 million (Rs 117.3 crore) for the aseptic packaging facility in Egypt, US$ 8.6 million (Rs 76.1 crore) for the WPP bag manufacturing unit in Mexico, and ₹38 crore for the PET and MLP recycling unit in Noida. The balance was directed toward other announced and routine capital expenditure across various units.
To meet the growing demand for pet food packaging, UFlex is setting up a woven polypropylene (WPP) bag manufacturing unit in Mexico. The project has a planned capital outlay of approximately US$ 50 million, of which about Rs 438.7 crore (US$ 49.7 million) had been incurred as of September 2025. Since the project’s announcement, around US$ 82.53 million (Rs 732.8 crore) of the total estimated capex of US$ 126 million (Rs 1,119 crore) has been spent. The remaining US$ 43.5 million (Rs 386 crore) will be invested leading up to the commissioning of the plant.
With increasing emphasis on sustainability and supportive legislation, UFlex plans to set up two recycling units at a new facility in Noida to process 36,000 MTPA of PCR PET bottles and 3,600 MTPA of mixed plastic (MLP) waste in India. Since the project’s announcement, approximately Rs 85 crore of the total estimated capex of Rs 317.1 crore has been spent. The remaining Rs 232.1 crore will be invested leading up to the commissioning of the plant in FY26. Post-expansion, the company’s total global packaging film capacity will rise to 690,160 MTPA, up from the current capacity of 636,160 MTPA.
Operating performance
UFlex India’s packaging films capacity utilization improved to 79.7 percent in the July–September 2025 quarter (versus 77.1 percent year-on-year, or YoY). The higher utilization supported a 3.4 percent YoY increase in production volume to 32,726 MT (versus 31,636 MT YoY). For the first half of FY26, capacity utilization stood at 80.2 percent (versus 73.3 percent YoY), resulting in 9.4 percent growth in production volume. This improvement reflects enhanced operational efficiency and a more supportive business environment.
During the July–September 2025 quarter, the company recorded healthy growth in packaging films sales volume, rising 17.8 percent YoY. On a half-year basis, sales volume increased by a robust 24.5 percent to 65,587 MT (versus 52,682 MT YoY), supported by steady performance across key segments. India’s Panipat virgin PET chips plant operated at a capacity utilization of 72.4 percent in the July–September 2025 quarter (versus 74.3 percent YoY). Third-party sales volume from the plant reached 20,046 MT during the quarter (versus 16,358 MT YoY), marking a 24.7 percent YoY increase driven by favourable seasonal demand.
Demand for packaging SKUs and related raw materials, including PET chips and packaging films, remained relatively subdued during the quarter, primarily due to short-term disruptions from the GST transition. This led businesses to defer new orders and focus on destocking pre-reform inventory, while consumers postponed purchases in anticipation of lower pricing.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
