New Delhi: Flexible packaging and plastic film maker Uflex aims to be a USD 2-billion firm in the next five years on the back of growth in domestic as well as international markets.
The company expects its packaging business to be growth driver apart from plastic film business, which is its traditional strength.
"Last fiscal, we were a billion dollar company and we expect that in next four to five years, we should be doubling our revenue. By FY20, we would be a USD 2 billion company," Uflex Group President R K Jain told PTI.
In FY15, Uflex had a consolidated total revenue of Rs 6,180.33 crore. For the first half of FY16, Uflex's total income was Rs 3,125.50 crore.
Uflex is in the process of investing around Rs 3,000 crore in a phased manner at its plant at Sanand in Gujarat, where it would manufacture packaging material for liquid products.
In the first phase, Uflex is investing Rs 580 crore on a new unit, which would be operational by October 2016.
"This would be for a new range of packaging material which we are going to produce. This is aseptic packaging material for liquid products like non-aerated drinks, dairy products, liquor, juices and would be similar to tetra pack," Jain said.
Currently, Uflex has plants at Noida, Jammu, Malanpur, MP and all its future expansions would be at Sanand.
"It (Sanand) would take care of all our future expansion, both in terms of products and existing business as we have enough land there," he added.
Uflex, which has market presence in over 140 countries with manufacturing units at UAE, Mexico, Egypt, Poland and USA, is expecting that the contribution of domestic market would increase in the coming years.
"Our combination of international and domestic revenue till last fiscal was 55:45. This year, it is 50:50 because there is a drop in the international sales because prices are down. With all the expansions in packaging business in India, our exports from India would increase," he said.
Jain added, "It would be now reverse as domestic market share would increase and it would be 45:55 in next 3-4 years as domestic packaging market is also increasing".
Apart from that, Uflex is also mulling to have another plant in the US or Europe in the field of packaging business.
"It might be in next one year or so. We have set plastic film units in different locations (nations), similarly we might set up a unit there as export from India would be difficult. It would be either in the US or Europe as they are the largest consuming nations of packaging materials," he said.
However, he added, "It would be small green field unit of around USD 20-25 million".
The company presently employs 8,500 people globally.
In India, it employs 7,400 and plans to employ around 400 at its Sanand plant.
"To begin with, we would employ around 350 to 400. However, when we would have full fledged operation, total employment would go up to 2,500 to 3,000 as packaging business is very labour intensive," he said.