• 66,927 MTPA sales volume during the quarter.
• Net revenue of Rs. 19,689 million.
• EBITDA of Rs. 2,152 million.
• EBITDA margin at 10.9%.
• PAT of Rs. 377 million.
• 132,577 MTPA sales volume during H1 FY25.
• Net revenue of Rs. 38,430 million.
• EBITDA of Rs. 4,384 million.
• EBITDA margin at 11.4%.
• PAT of Rs. 855 million.
UFlex Limited (BSE: 500148, NSE: UFLEX), India's largest integrated multinational flexible packaging and solutions company, reported second quarter fiscal 2025 unaudited consolidated net revenue of Rs. 38,532 million. Normalized EBITDA for the quarter was Rs. 4,383 million and normalized EBITDA margin was at 11.4%. Profit before exceptional items and tax for the quarter was Rs. 616 million.
In its meeting on November 13, 2024, the Board of Directors approved and took on record the unaudited consolidated financial results for UFlex Limited and its subsidiaries for the quarter and half-year ended September 30, 2024.
Q2 FY25: Maintain Growth Momentum in Volume, Revenue, and Profitability
The strong growth in the second quarter of fiscal 2025 carried forward the momentum from the previous quarter. Consolidated sales volume grew by 10.9% YoY and 5.9% QoQ. Packaging films (consolidated) sales volume increased by 14.6% YoY and 8.0% QoQ, while packaging (Flexible Packaging, Liquid Packaging and Holography) sales volume witnessed marginal decline of 0.7% YoY and 1.4% QoQ. Continuing the momentum, Liquid Packaging achieved capacity utilization of 93.2% in Q2 FY25 vs 82.9% in Q2 FY 24, resulting in sales volume growth of 17.6% YoY. Flexible Packaging sales volume grew 6.8% QoQ.
Consumer spending in the FMCG (Fast-Moving Consumer Goods) and Food & Beverage (F&B) sectors is closely linked to overall economic growth, with changes in disposable income, purchasing power, and consumer confidence having a direct impact on the demand for everyday products and services. The economic environment remained challenging during the quarter. The Consumer Price Index (CPI) rose from 3.65% in August to 6.21% in October, while food inflation was 10.87% in October from 5.66% in August 2024 (as per MOSPI, GOI). This persistent rise in inflation has put pressure on disposable income, spending, and overall consumer sentiment, affecting demand in the FMCG and F&B sectors —both of which are key drivers of the flexible packaging demand.
UFlex, however, witnessed a noticeable shift towards premium and branded products, presenting an opportunity for steady growth. Furthermore, rural demand is pivotal in driving the FMCG demand in FY25. Overall, the FMCG sector saw stable demand trends in the September quarter as rural volume growth outpaced urban markets for the third consecutive quarter. Rural India FMCG volumes grew 6%, while urban demand grew only 2.8% (source: NIQ).
In the current quarter of fiscal 2025, UFlex delivered its first SpeedPlus25K filling machine with a capacity of 25,000 aseptic liquid cartons per hour and secured a repeat order after its impressive operational performance. Asepto’s SpeedPlus25K high-speed filling machine, combined with an additional 5 billion pack capacity, will enable UFlex to engage a wider range of high-volume customers in India and internationally.
Packaging Film Business
Packaging Films overall production volume increased by 8.2% YoY to 128,880 MT in Q2 FY25, up from 119,109 MT in Q2 FY24. Overall Capacity utilization rose by 280 basis points YoY, reaching 83.4% in Q2 FY25 compared to 80.6% in Q2 FY24. The Packaging films sales volume and revenue demonstrated strong YoY growth, with sales volume increasing by 14.6% and revenue by 23.4%. Overall Packaging film revenue for Q2 FY25 stood at Rs. 24,836 million, up from Rs. 20,123 million in Q2 FY24.
Excluding India, packaging films revenue grew by 8.4% YoY and 4.2% QoQ, reaching to Rs. 18,843 million in Q2 FY25, compared to Rs. 17,389 million in Q2 FY24.
India Packaging Film: Strong Growth for the Second Quarter in a Row
The business outlook for packaging films showed significant improvement in Q2 FY25. UFlex India’s packaging films production volume grew by 10.4% YoY and 10.8% QoQ, reflected strong operational performance. Consequently, the Capacity utilization rose by 750 basis points QoQ and 320 basis points YoY, reaching 77.1% in Q2 FY25, compared to 73.9% in Q2 FY24 and 69.6% in Q1 FY25. Sales volume followed suit, grew by 10.8% YoY and 7.3% QoQ, driven by sustained demand across markets.
Americas Region (USA & Mexico): Demand Growth Drives Strong Performance
In Q2 FY25, revenue from packaging films in the Americas region grew by 16.3% YoY and (-) 0.9% QoQ, at Rs. 6,374 million from Rs.5481 million in Q2 FY24. Sales volume in the region continue to grow in Q2 FY25, an increase of 27.7% YoY and 14.2% QoQ, reaching 30,899 MT, up from 24,202 MT in Q2 FY24.
Fully equipped to cater to the demand of the green films: The North American market, particularly USA, has led the way in PCR green films consumption, fueled by consumer and industry-driven sustainability efforts. Flex Films USA is well-positioned to meet the increasing demand for green PCR films with our patented ASCLEPIUS™—a 90% recycled PCR PET plastic film. Both our USA and Mexico operations are fully equipped to handle the growing demand for PCR green films in FY26 and beyond.
Europe (Hungary, Poland, CIS): Value-added Films Maintain Growth
In Q2 FY25, packaging film sales volume in the region increased by 38.9% YoY and 5% QoQ, which led to the revenue growth of 46.2% YoY and 8.0% QoQ. This strong performance reflects sustained demand for the packaging film business, contributing positively to overall business growth.
In Q2 FY25, Packaging film capacity utilization in Europe rose significantly, increasing by 1,020 bps YoY to 84.1%, up from 73.9% in Q2 FY24. Packaging film Production volume grew by 27.7% YoY, reaching 34,671 MT compared to 27,156 MT in Q2 FY24. This production growth was largely driven by the commissioning of the CPP film line in CIS country which achieved capacity utilization of 49.5% in the quarter. The CIS region BOPET line operated at 111.8% capacity utilization, while the Hungary plant achieved 108.4% capacity utilization during the quarter compared to 83.5% in Q2 FY24.
Super-specialized barrier films typically take a long time for customer approval. UFlex's Ultra High Barrier (UHB) BOPP film, which serves as the counterpart and substitute for SL8, has already been approved by certain major customers and UFlex is confident of obtaining more customer approvals in the near-term.
UFlex plans to raise its sale volume to 30% in value-added films as part of its strategy to expand its range of specialized, high-value barrier films. The Hungary plant is a key to achieving this growth, with the capability to produce up to 45% of value-added film relative to its total film production volume. This strategic emphasis on high-value products highlights UFlex’s commitment to innovation and meeting the latent market demand for specialized packaging solutions.
MEA (Dubai, Egypt, Nigeria) Region: Global Network Optimization Boosts Growth
In Q2 FY25, the Middle East and Africa (MEA) facilities had a flat growth in the production volume, reaching 41,229 MT, up from 41,228 MT in Q2 FY24. Capacity utilization reached 82.9% in Q2 FY25. The flat production volume and capacity utilization in the regions are expected to improve in H2.
Sales volume in the MEA region rose by 3.4% QoQ but declined 4.2% YOY to 35,281 MT in Q2 FY25, compared to 36,845 in Q2 FY24. MEA region revenue witnessed growth of 2.5% QoQ, reached Rs. 6,110 million in Q2 FY25 compared to Rs. 5,961 million in Q1 FY25.
UFlex operates in 9 countries and the business is transacted largely in local currency. However, since the reporting currency is INR, there is a translation adjustment and if the transaction currency has depreciated against the reporting currency, this results in forex Losses, which must be accounted for. Largely, such forex losses do not impact the company’s operational performance or actual financial health including the cash flows.
During the quarter, the company incurred a total capital expenditure of Rs. 3,488 million. This expenditure was allocated to four major projects- approximately Rs. 547 million for aseptic packaging facility in Egypt, Rs. 1,081 million for setting up a Virgin PET chips plant at Egypt, and Rs. 251 million for the CPP line in Mexico. Additionally, Rs. 385 million of the Capex was incurred for the Asepto debottlenecking facility at Sanand, India, while the remaining is for normal and maintenance capex at various units. (conversion value USD = 83.79 INR in Q2 FY25).
Egypt: Aseptic Liquid Packaging Facility with 12 billion Carton Packs Annual Capacity
To meet the growing demand for aseptic liquid packaging across Egypt, Europe, the Middle East and Africa, the company’s wholly owned subsidiary, Flex Asepto (Egypt) S.A.E., is setting up an aseptic packaging facility in Egypt with an annual production capacity of 12 billion carton packs. The total investment is planned at USD 126 million. The Commissioning of the plant is scheduled for September 2025, with the capex funded through a combination of owned and borrowed capital.
Egypt: Virgin PET CHIPS line of 2,16,000 MTPA
The Virgin PET Chips plant in Egypt is scheduled for commissioning in the second half of FY25 with an annual production capacity of 216,000 MT. The total investment is USD 68 million with funding through a combination of debt and equity. The residual investment to be made as on 30th September is only USD 18 million, which will be incurred in H2 FY25.
Mexico: CPP line of 18,000 MTPA capacity
The CPP line with a capacity of 18,000 MTPA and the coating line are expected to be commissioned in H2 of fiscal 2025. The total estimated capital expenditure for the project is USD 33 million (MXN 640.5 million), of which, USD 32 million (MXN 620.5 million) is already incurred, (Conversion value USD= 19.6697 MXN in Q2 FY25).
Sanand: Aseptic Liquid Packaging expansion project to increase capacity by 70%
The debottlenecking project in the Aseptic Liquid Packaging plant at Sanand aims to increase annual capacity by 5 billion carton packs, taking the total capacity to 12 billion packs. The estimated capital expenditure for the project is USD 24 million (Rs. 2,000 million). To date, USD 19 million (Rs. 1,579 million) has already been incurred, and management expects the commercial commissioning of the plant to be scheduled in Q4 FY25.
Commenting on the results, Mr. Ashok Chaturvedi, Chairman and Managing Director, UFlex Group, said, “We are pleased with the robust growth in sales volume, revenue, and normalized EBITDA for the second consecutive quarter of FY25.
The planned commissioning of our aseptic packaging facility in Egypt in FY26 is a key milestone in our global growth strategy, and we are confident of replicating the success of our aseptic packaging business across international markets. With this, we set our sights on a global manufacturing footprint for our aseptic business.
We are pleased to announce the successful launch of our 25K aseptic filling and sealing machine. We have delivered the first machine, and it is running successfully in full swing at our customer’s plant. We are extremely confident about the market opportunity and competitive advantage of this machine.
At the heart of our business strategy is a steadfast commitment to sustainability, essential for environmental stewardship and long-term value creation.
Going ahead, our focus will be on growing our key markets, expanding our footprint, strengthening our global recycling infrastructure, and investing in artificial intelligence and machine learning to reduce our carbon footprint and increase our operational efficiencies.
As a company, we take our role in innovation seriously, and we will continue to develop pioneering solutions to deliver on the changing regulatory and consumer landscape”.
Mr. Rajesh Bhatia, Group president and CFO, UFlex Limited, said, “Our Q2 FY25 results reflect our sustained solid YoY growth trajectory, with sales volume up 10.9%, revenue increasing 13.7%, and normalized EBITDA rising 10.7%. In the first half of the current fiscal year, sales volume increased by 10.7%, revenue grew by 13.0%, and normalized EBITDA witnessed an impressive 253.9% increase. This strong first half sets the stage for an even better second half.
Looking ahead, we are expanding capacity at the Sanand facility, adding 5 billion cartons post-debottlenecking and commissioning a 216,000 MTPA virgin PET chips plant at Egypt and a 18,000 MTPA CPP line, which will drive the revenue, profitability, growth in FY25 and beyond.
“Our Mexico plant showcased outstanding performance in the first half of the fiscal year, achieving 13.3% growth in sales volume and 34.3% increase in revenue.”
UFlex remains committed to fostering a circular economy and supports a sustainable, green planet. This is reflected in our significant progress in plastic recycling, where we have successfully recycled over 385 million plastic PET bottles and 3,773 metric tons of MLP waste in the first six months of fiscal 2025.
The increasing focus on sustainability coupled with the regulatory interventions is set to propel global growth in the PCR PET market. With fully operational recycling infrastructure, UFlex is well-poised to meet the demand for recycled packaging materials. UFlex’s commitment to sustainability, combined with its capability to provide reliable, end-to-end recycling solutions, places it as a preferred producer of recycled plastic films in India and global markets.
Debt portfolio to maintain diminishing growth as commercialized projects near the completion
Management is optimistic that the projects commissioned in Panipat (Pet Chips with capacity of 164,000 MTPA), Egypt (PCR facility with capacity of 18,000 MTPA), and CIS (CPP plant with capacity of 18,000 MTPA) in 2024, alongside major FY2025 and FY 2026 initiatives—including a 216,000 MTPA Virgin PET chips Plant at Egypt, 18,000 MTPA CPP line at Mexico, a 5-billion-pack capacity expansion at Sanand and a new 12-billion pack Aseptic line at Egypt —will drive additional earnings and free cash flow. As of September 30, 2024, the company’s gross and net debt were Rs 69,560 million and Rs 57,900 million, respectively.
UFlex Limited is at the forefront of innovation in the ever-changing flexible packaging and packaging film landscape. Using sophisticated technologies and design concepts, the Company constantly refines and updates its product offerings to adapt to changing consumer preferences and stay ahead of the industry curve. A multitude of innovative products across its business verticals were introduced during the quarter ended September 30, 2024, as outlined below:
Packaging Films Business
1. B-TMA Film: B-TMA is a high-performance, dual heat-sealable BOPP film specifically engineered for pharmaceutical packaging applications, particularly for syringes. This advanced packaging solution features dual heat sealability, with one side treated for optimal Seal Initiation Temperature (SIT) and low friction, ensuring reliable sealing during packaging processes. B-TMA films are designed to retain their seal strength even after exposure to gamma radiation, making them ideal for sterilized pharmaceutical products. Additionally, they offer enhanced functional properties such as excellent anti-static and slip qualities, which contribute to smooth handling and processing. With superior optics for clear visuals and exceptional machinability, B-TMA is the ideal choice for high-quality, secure, and efficient packaging in the pharmaceutical industry.
2. B-TMS-M Metallized BOPP Film: It is an advanced metallized BOPP film designed to meet the high-performance demands of flexible packaging. B-TMS-M offers exceptional metal brilliance, delivering a high-strength metal bond and an eye-catching metallic finish that enhances the visual appeal of packaged products. The film's strong metal adhesion ensures durable bonding with metal layers, while its robust extrusion lamination bond strength enhances the integrity of the final package. With superior barrier properties, including a low Water Vapor Transmission Rate (WVTR) of 0.3 gm/m²/day and an Oxygen Transmission Rate (OTR) of 60 cc/m²/day, B-TMS-M helps preserve product freshness and quality. Additionally, the film is optimized for high-speed Vertical Form-Fill-Seal (VFFS) and Horizontal Form-Fill-Seal (HFFS) machines, ensuring efficient production processes. Ideal for applications such as biscuits, cookies, crackers, confectionery, and snack packaging, B-TMS-M provides excellent protection against moisture, extends shelf life, and maintains the quality of the product inside.
3. F-MRC-M Film: It is a high-performance release coat metallized polyester film (BOPET) engineered for specialized applications that require both versatility and reliability. This unique film features a modified release coating with a silicone-coated side for easy release and a non-coated side that enhances its metallization transfer capabilities. The metallized layer not only improves the visual appeal of the packaging but also provides superior barrier properties, making it ideal for a variety of high-performance applications. With exceptional high temperature resistance and thermal stability, F-MRC-M maintains its structural integrity and performance under demanding conditions. It is particularly well-suited for applications such as self-adhesive waterproof membranes, where it serves as an effective moisture barrier and durable release liner. The silicone-coated side ensures effortless removal, making it the perfect choice for processes that require quick and clean release. Whether used for packaging, liners, or membranes, F-MRC-M offers unmatched functionality and durability across a range of industries.
4. B-TLL Film: B-TLL is a state-of-the-art transparent heat-sealable BOPP film developed by UFlex to address the evolving demands of the flexible packaging industry. This innovative film features an ultra-low Seal Initiation Temperature (SIT) of less than 85°C, enabling efficient sealing at lower temperatures and offering a wide seal range. B-TLL also boasts excellent hot tack properties, with one side treated to ensure strong, immediate seals that prevent leaks, improve production efficiency, and reduce material waste. Its consistent slip and antistatic qualities ensure smooth processing on high-speed Horizontal Form-Fill-Seal (HFFS) and Vertical Form-Fill-Seal (VFFS) machines, minimizing friction and static build-up. The film also delivers high seal integrity, maintaining product freshness and integrity throughout its shelf life, even at low temperatures. Additionally, B-TLL provides excellent optics and printability, ensuring clear visuals and high-quality branding. This versatile film is ideal for packaging a range of products, including sandwiches, baked products like biscuits and cookies, confectionery items, chips, and snacks, making it a go-to solution for packaging that requires both high performance and aesthetic appeal.
Flexible Packaging
1. 3D POUCH WITH HANDLE INSIDE GUSSET: A category first in Bio Fertilizer Sector: A premium 5 panel pouch offering that offers differentiated shelf presence and enhances customer convenience. Crystal Crop is the largest crop production & manufacturing company in India.
2. ELEPHANT EXTRA LONG BAS/RICE 20 KG: 100% recyclable with reclosable open commercialized for 20 years basmati packing in 3 side gusset pouch. Mono PE design offers best in class recycling
3. ALSHALAN 2KG PUNJABI AMBER INNER ZIPPER and ALSHALAN 2KG JUTE AMBER INNER ZIPPER: Zipper In Roll Form– Innovation offered first time for rice / basmati segment. It is superior in terms of convenience, cost savings, and shelf appeal/ re-close ability factor. No drop in productivity /no replacement of existing FFS Machine - First time in roll form laminate (C –Seal, Quad pack, 3 Side seal) pre fitted zipper (Inno lock) which can run on existing FFS with same changes in machine.
Chemicals Business
1. Flexcote 985HF 200 for ALU-ALU application - It is a high-performance solvent-based (SB) adhesive specifically designed for the fast-growing ALU-ALU packaging trend in the pharmaceutical industry. This advanced adhesive is formulated to meet the rigorous demands of ALU-ALU laminates, which are used for packaging medicines that require superior protection, high barriers, and cold-forming capabilities. The typical laminate structure for this application includes OPA 25-micron, Aluminum foil 45-micron, and 60 micron PVC, which must be resistant to thermal damage, moisture, and oxygen, while maintaining high mechanical strength.
Flexcote 985HF 200 has several unique characteristics. Its high solid content and low viscosity allow converters to use it at high tray solids, reducing solvent consumption by 10-15% compared to conventional adhesives. With running solids at 50% (compared to the typical 35%), this adhesive offers a more efficient and sustainable solution. Key features of Flexcote 985HF 200 include low solvent consumption, low VOC emissions, high bond and seal strength, and no migration of PAA, making it ideal for pharma applications. It also provides excellent thermal resistance, protection against moisture and oxygen, and ensures strong barrier properties. Additionally, it supports excellent cold forming at high pressure, ensuring compliance with the stringent requirements of the pharmaceutical industry. Flexcote 985HF 200 is the ideal choice for ALU-ALU packaging, offering superior performance, durability, and compliance with pharma industry standards.
2. The Flexgreen NW UV-LED Flexo Inks – This series of inks represents an advanced generation of free radical-based inks, specifically designed for high-performance applications on containers such as tubes, paints, food packaging, and other In-Mold Labeling (IML) substrates. With excellent anti-static properties, these inks are particularly well-suited for high-speed production environments. The series features robust rheology, enabling smooth operation at higher machine speeds, and delivers high color density with sharp dot transfer, ensuring vibrant, high-quality prints. The inks also boast outstanding light fastness (LF) pigment properties for enhanced durability. Fast curing with 385 and 395 nm LED lamps makes them highly efficient, while their low viscosity makes them ideal for flexographic printing. Additional benefits include excellent tray stability during long runs and their suitability for in-direct food contact applications, making them a versatile choice for a variety of packaging needs. Available in both process and base colours, Flexgreen NW UV-LED inks provide a reliable and eco-friendly solution for IML and other specialized printing applications.
4. The Flexgreen HFS Screen Coating – Foil Stamping- It is a new-generation free radical-based, polychromatic curing foil stamping coating specifically formulated for screen applications on paper and board substrates. Designed for flat-bed application, this coating delivers exceptional foil adhesion properties, ensuring a strong bond with substrates while offering excellent nail and scratch resistance for long-lasting finishes. The Flexgreen HFS coating features superb curing capabilities, enabling fast and efficient curing, even in demanding production environments. Its moderate viscosity ensures easy application through a variety of mesh sizes, offering flexibility in different screen-printing setups. The coating also exhibits excellent product stability during application, making it a reliable choice for high-quality foil stamping results. Additionally, its ease of fixation and outstanding adhesion properties make it an ideal solution for creating vibrant, durable finishes in a range of packaging and decorative applications.
Holography Business
UFlex’s holography business has made significant strides in innovation, particularly within the decorative products segment, as part of its broader strategy to diversify. The division has also developed a unique holographic calendar application.
Printing Cylinders Business
UFlex’s printing cylinders business has introduced two groundbreaking products: male-female embossing cylinders and embossing cylinders for gluing in home décor products using honeycomb aluminum sheets. These products represent a significant breakthrough, making our company the only manufacturer in India to offer these specialized solutions. The business has expanded into a new market segment with a state government milk federation by providing rotogravure printing cylinders for printing milky poly.
Awards and Accreditations:
• Mr. Ashok Chaturvedi, Chairman and Managing Director, UFlex Limited, was conferred the “Business Leader of the Decade” award by Mr. Jorgan K. Andrews, Deputy Chief of Mission, US Embassy At the inaugural session of the Indo-American Chamber of Commerce, India’s 21st Indo-US Economic Summit 2024.
• UFlex became a member of the United Nations Global Compact, the world's largest corporate sustainability initiative.
• Flex Films won an award for the best debut at the PTAK Warsaw Recycling Fair 2024 for its Multi-layer Plastic (MLP) line and products made from reprocessed flexible packaging.
• UFlex Films business has won several awards by The Indian Institute of Packaging (IIP) National Awards 2024 for the following products:
1) F-ETB "Transparent high-barrier easy-tear polyester film"
2) F-PSX “High barrier Alox polyester Film”
3) F-POX "Excellent Oxygen and Moisture Barrier Transparent BOPET film"
4) F-AFR-M "Alu- Alu replacement metallized Polyester film"
• Flex Films received the Gold Award for its F-ISB PET film for Cold Blister Forming at the 35th Dow Packaging Innovation Awards 2024.
• UFlex Chemical Business received the Environment, Health & Safety Impact Award at the 11th CII Northern Region Inter-Industry Competition on Environment, Health, and Safety (EHS).
