Gujarat Global News Network, Ahmedabad
“Liquid packaging business has tremendous potential in India as well as globally. While the Asia-Pacific market is clocking a 7 per cent growth rate, the Indian market is growing in double digits for the last three years, with last year at 20 per cent. The Indian market would double from 8 billion paks to 16 billion paks in the coming four to five years,” said Ashwani K Sharma, president and CEO (liquid packaging and new business) at Uflex.
Drawing parallels, China has tremendous growth story which has already reached approximately 80 billion paks. In India with similar population the growth potential is humungous. So we are fastening our belts to take off in the Indian market and position the business globally. He added that even the neighbouring Pakistan has a market size that is double of that of India’s current market size, while China market has already touched around 80 billion paks.
The company’s packaging plant at Sanand is close to its customers like Nestle, Nivea, Colgate among others.
The company will invest around Rs 580 crore in the first phase to set up an aseptic packaging line that will employ around 250 people. While the capacity in the initial phase will be around 3.5 billion paks, it would be increased up to 7 billion paks over time. Trial runs would start by August-September next year.
Nearly, 90 per cent of the production from this factory will be for domestic consumption, the company said in a statement. Uflex plans a phased investment of Rs 1500 crore at its 72 acre Sanand site that would eventually generate direct employment for 2,000 people, and generate revenues worth Rs 3,000 crore with an operating profit of about Rs 800 crore. Besides an aseptic packaging capacity of about 7 billion paks, the Sanand site would also have facilities for cement packaging, tube manufacturing as well as holographic films etc.
Uflex has presence in 140 countries and has facilities at Noida, Jammu and Malanpur in India. India accounts for nearly 51 per cent of its global consolidated turnover, and with the Sanand plant coming onstream, the company sees that going up further.
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