Wednesday 11 December 2013

Uflex targets to double sales to $2 bn in next four years

Company had reported 19% decline in consolidated net profit at Rs 46 crore for the second quarter ended Sept 30, 2013

Country's largest flexible packaging company Uflex is aiming to double its revenues to $2 billion in the next four years and would set up a new plant in the western region.

"In the next three to four years, we are expecting that our revenue would be doubled. It would jump from $1 billion to $2 billion. That is the target in our mind. It could be in next three or four years, but would be definitely within four years," Uflex Group President R K Jain told PTI.

According to Jain, FY2014-15 would be a 'game changer' for Uflex. "Moreover, a year after that may be extra ordinary for us," he said.

"On a whole, our top line (revenue) is growing by 20% every year, we expect our bottom line (net profit) to grow between 30 to 35%," he added.

The company had reported 19.27% decline in consolidated net profit at Rs 45.7 crore for the second quarter ended September 30, 2013. In the first quarter, which ended on June 30, Uflex's profit dipped to Rs 43 crore.

"This year we call it a recovery year. We are witnessing that every quarter on quarter there is an improvement. That's why we categorise this year as recovery year," Jain said, adding that its expects to do better in second half.

"Once we close this financial year, we should be reaching to a normal stage. For FY 2014-15, we are quite bullish and would operate on a normal basis," he said, adding Uflex would operate on normal margins and product pricing from that year.

"Our top line growth was 15% plus, even in those two years when we have not performed quite well in terms of margins. We expect that this would continue," he said.

The group has invested $160 million to start new plants at Kentucky in USA and Poland to cater the Europe and CIS countries. Apart from that, it has also expanded the production capacity of its plants at Egypt and Mexico. It also has manufacturing base in Dubai.

Uflex has three manufacturing units at Noida, Jammu and Malanpur in Gwalior for producing plastic films and value added products for its packaging business.

"All our plants at Noida and Jammu are running at full capacity. We are moving to a new location because these locations are quite full. We might plan for the western region so that we are much closer to the customer," said Jain.

However, he declined to immediately give details of the location and capacity of the proposed plant.

"We are going to finalise in the next two months about the location, total size, what kind of capacity we are going to create and for what products it would be," Jain added.

Uflex's newly commissioned plant at Kentucky started its operation in March this year. According to Jain, it is one of the biggest plant producing plastic films in the US. It has an installed capacity of 30,000 tonne per annum.

Uflex's market spans over 140 countries. Its client base includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Monsanto, HUL, Perfetti and ITC.

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