Flexible packaging manufacturer UFlex Ltd will invest more than Rs 7 billion to expand its packaging film production line in Dharwad, Karnataka, a senior company official has confirmed. The upgrade will add 54,000 MTPA of new capacity, increasing UFlex’s global packaging film capacity from 636,160 MTPA to 690,160 MTPA.

“We plan to invest over Rs 7 billion to expand our packaging film manufacturing line in Dharwad. This project will add 54,000 MTPA of new capacity, significantly strengthening our portfolio and enhancing our ability to deliver scalable, high-quality packaging solutions,” Rajesh Bhatia, Group President and CFO of UFlex Ltd, told PTI in an emailed interview.

The Dharwad expansion follows the recent upgrade of the aseptic packaging facility in Sanand, Gujarat, where capacity rose from 7 billion to 12 billion packs per year. Bhatia added that three major global projects are progressing well: a 12-billion-pack aseptic plant in Egypt, an 80-million WPP bags line in Mexico and a 40,000 MTPA recycling facility in Noida. These will add significant scale to the company’s global packaging portfolio.

UFlex expects the new capacities to begin contributing from FY27 and reach full-scale impact in FY28. “We expect these investments to generate nearly Rs 30 billion in additional revenue once fully operational. In FY25, we reported consolidated revenue of over Rs 150 billion, and these new capacities will further strengthen our growth trajectory,” Bhatia said.

He added that GST rationalisation will support broader consumption growth, while India’s extended producer responsibility (EPR) framework will drive demand for recycled packaging materials. “These developments together create a strong foundation for ongoing growth across our businesses,” he said.