UFlex commits INR 700-crore to expand film capacity in Karnataka

UFlex has announced a significant expansion of its packaging-film operations in Karnataka, with an investment of more than INR 700-crore to scale up capacity at its Dharwad plant, according to its latest earnings report. 

According to the Q2 FY26 earnings report, to meet the growing domestic demand for packaging films in India, UFlex has proposed a 54,000-MTPA capacity expansion at Dharwad, Karnataka. The project involves a capital outlay of Rs 7,154-million and is expected to be commissioned during FY 2027–28, enhancing the company’s domestic manufacturing capabilities and supporting sustained growth in the packaging-films segment.

The company recently increased its aseptic-packaging capacity at Sanand, Gujarat, from seven-billion to 12-billion packs annually. Parallel developments are underway in Egypt, Mexico and India, including a 12-billion-pack aseptic facility in Egypt, an 80-million WPP-bag line in Mexico, and a recycling plant of around 40,000-tonnes per annum in Noida.

The Karnataka investment is expected to begin contributing to the company’s performance from FY27, with the full impact reflected by FY28. UFlex estimates that its ongoing domestic and overseas expansions could add as much as INR 3,000-crore in additional revenue once fully operational. The company reported consolidated revenue of more than INR 15,000-crore in FY25.

Industry observers note that the project aligns with rising demand for flexible packaging across FMCG, food, beverage and pharmaceutical applications, supported by regulatory tailwinds such as GST rationalisation and India’s extended producer responsibility framework. The expansion is also expected to improve supply-chain responsiveness for both domestic and export customers as sustainability and recyclability gain prominence in procurement decisions.