UFlex Invests $200 Million in Egypt for Strategic Expansion

Flexible packaging firm UFlex is investing $200 million in Egypt on two projects to strengthen its backward integration strategy. The investments involve a PET chips facility and an aseptic packaging unit aimed at servicing markets in the Middle East, Europe, and potentially the Americas.

In a strategic move to strengthen its market presence, UFlex, a leader in flexible packaging solutions, is allocating $200 million for two major projects in Egypt. This investment is aimed at supporting neighboring countries and European markets while meeting local demands.

According to UFlex Ltd Group President and CFO, Rajesh Bhatia, about $70 million is being directed towards a new PET chips facility. This facility will supply essential raw material for BOPET films, marking a crucial step in their backward integration strategy. Additionally, $125-130 million is earmarked for an aseptic packaging unit slated for completion by FY26.

Bhatia highlighted Egypt's favorable conditions, including duty-free exports to Europe and lower costs of manpower and energy, making it an ideal hub for expansion. With these projects, UFlex aims to achieve a 15% consolidated revenue growth in FY25, building on last year's revenue of Rs 13,510 crore.

(With inputs from agencies.)