UFlex up 4% as arm to set up aseptic packaging unit in Egypt for $126 mn

UFlex share price: Shares of printing ink manufacturing company UFlex soared up to 3.85 per cent to hit an intraday high of Rs 718.40 per share on Friday, October 4, 2024. 

UFlex share price surged after the company announced that its step down wholly owned subsidiary, Flex Asepto (Egypt) SAE, has decided to set up an Aseptic Packaging facility in Egypt.

In an exchange filing, UFlex said, “We are pleased to inform you that the Company’s step down wholly owned subsidiary viz., Flex Asepto (Egypt) SAE at Egypt has decided to set up an Aseptic Packaging facility in Egypt.

The proposed capacity addition stands at 12 billion packs per annum. 

 

Meanwhile, the cost of setting up the plant is approximately $126 million and the mode of financing will be Owned and Borrowed funds, UFlex revealed in a statement.

The move to set up a plant stems from the need to meet the demand of Aseptic Packaging in Egypt region, Europe, Middle East and East Africa.

UFlex background 
 

Uflex Ltd specialises in the manufacturing and sale of flexible packaging products, positioning itself as a leading global manufacturer in this sector. 

The company operates mainly through two business segments: Packaging Films, which accounts for 62 per cent of its revenue, and Value-Added Products (VAP), contributing 38 per cent. The Packaging Films segment includes a diverse range of products such as BOPET, BOPP, CPP, and eco-friendly options like PCR PET films. 

The VAP segment further breaks down into flexible and liquid packaging, holography for brand protection, engineering solutions for packaging machinery, and a variety of inks and adhesives.

With a strong international presence, Uflex caters to over 150 countries, with its revenue distribution including 46 per cent from India and major contributions from the Americas, Europe, and the Middle East & Africa. 

The company serves big companies including Nestle, Coca-Cola, and P&G, with its top customer accounting for 8 per cent of revenues. 

Uflex operates 16 manufacturing facilities across 9 countries, showcasing substantial production capacities in packaging films and related products. In Q1 FY25, the company launched 12 new products, reinforcing its commitment to innovation and meeting diverse market demands.

UFlex share price history
 

In the past six months,UFlex shares have risen over 50 per cent while they have surged about 56 per cent in the past year. 

Notably, the UFlex scrip has fallen about 12 per cent in the past month..

The 52-week range of UFkex share is Rs 380.05-859.90.

At 9:51 AM, shares of UFlex were off highs and were trading 0.51 per cent lower at Rs 688.25 per share. In comparison, BSE Semsex was trading 187 points lower at 82,309 levels.