Uflex Set to Pump in $90 Million on Aseptic Packaging Expansion

India’s largest flexible packaging manufacturing firm, Uflex Ltd., is investing $85.7 million (550 crore rupees) to set up its fourth factory.

This investment aims to help the company step into the aseptic market, which is presently controlled by Tetra Pak Inc.

The new factory situated in Sanand will have a production capacity of 7 billion containers per year. Packages will be for energy drinks, and milk and juice markets, among others. 

The factory would have two printing lines and one lamination line. Jain said Uflex sees a lot of prospects in the aseptic packaging market in the country where Tetra holds 90% of the market share.

Uflex Invests to Step Into The Aseptic Packaging Market
The liquid food packaging market in India is opening up fast and presents a tremendous opportunity to expand. Jain said the Sanand plant would cater to the Indian market Export opportunities to adjoining countries like Bangladesh, Nepal, Myanmar, Sri Lanka, and Pakistan would also be analysed, he added.

In a statement released by Uflex, the company claimed the Indian domestic market to be the target for 90% of the production of its Sanand plant.

The new Ahmedabad plant is part of Uflex’s bigger strategy of becoming a $2 billion group in the coming five years. Interestingly, during the last fiscal year, ending March 31st, the company notched up a profit of $39.7 million (255 crore rupees). It is growing at a rate of 15 to 18% every year in terms of volume and 12 to 14% in terms of sales.

According to Jain, Uflex’s next target is to double its turnover to $2 billion within the coming three to four years. The company plans to focus on product and process improvement, in addition to the expansion of its capacity.

According to the company, plastic & metal packaging in India’s goods industry is experiencing rapid growth of 15% every year. This trend is likely to be maintained because market penetration is still low. According to Jain, approximately 80% of the potential market is yet to be reached.

Jain is extremely optimistic about an upcoming boom in the sector due to factors like economic prosperity, changing lifestyles, increasing demand for branded and quality products as well as concern for hygiene.

Sanand plant will employ 250 people at first. However, it’s likely to grow to 3,000 employees later on when it becomes fully operational.

So, where is the company now after it attempts to enter the aseptic packaging market?

Uflex Enters Aseptic Packaging Market: Success or not?
The new aseptic liquid packaging plant in Gujarat is designed to have a capacity of 7 Billion packs a year. The new plant name is Asepto and will give Uflex the ability to quickly produce small runs of speciality products and large volumes of commodity products. Included in the production are Asepto Pillow, Premium, and Spark.

This plant will be the first in Gujarat, filling and sealing more than 78,000 packages in an hour in different sizes from 100 ml to 200 ml. Moreover, it will need more than 200 employees in the area, creating more jobs for local people.

To answer the question, the company is successful in venturing into the aseptic packaging market since its first investment in 2015.

When Pandemic Strikes
The pandemic has been a game-changer in many ways, but one of the most significant changes has been in the realm of food and beverage packaging. As consumers become more health-conscious and hygiene-minded, brands need to adapt their packaging to meet these new demands.

As a brand, the three most important considerations for packaging are how to PRESERVE the product, how to PROTECT it, and how to PROMOTE it. In reaction to the recent demand created by the pandemic, Asepto has designed its product portfolio with these three objectives in mind. With these objectives, the company preserves the quality and integrity of its product.

Sustainable packaging has become a top priority, as many brands want to lessen their negative environmental impact. These changes are likely to have a lasting effect on the food and beverage industry, as consumers continue to demand safer, more sustainable packaging.

Paper Straw in Uflex Aseptic Cartons
UFlex Limited has always been a company at the forefront of innovation. From its inception, it has attempted to meet the varying demands of its market. Now, the company is looking to achieve a new goal: sustainability.

With the help of its aseptic liquid packaging business, it plans to create a manufacturing line for India’s first U-shaped paper straw. This will allow the company to drastically reduce its reliance on plastic straws, which are a major contributor to environmental pollution.

The move will also help to create new jobs in the community and further solidify UFlex’s commitment to social responsibility. In a globalised world, companies take measures to protect the planet and UFlex is leading the way in this effort.