UFlex, the India-based multinational flexible packaging products company, is looking to set up a second manufacturing facility in the UAE, as the company is gearing up to launch its ‘foil stamping’ technology – said to be a global first innovation in aseptic liquid packaging material – in the Middle East and North Africa (MENA) market.
Ahead of the launch plans, UFlex will be showcasing its new product with unique packaging features for the beverage industry at the Gulfood Manufacturing Expo, to be held in Dubai on November 7-9.
“The Middle East and Africa region will be among the focus markets for our new and innovative ‘foil stamping’ technology for the beverage industry. The Middle East is a very familiar market for UFlex as we already have a significant presence in the region and we are confident of adding to it with our new offering,” Ashwani Sharma, president and chief executive officer of Aseptic Liquid Packaging Business at UFlex, told Arabian Business.
“We will consider setting up a manufacturing facility for the new product in the UAE, with a view to make it a hub for our global plans for this,” Sharma said.
“A final decision [on setting up the plant in the UAE], however, will depend on how fast we can achieve a significant market size for our new product there,” Sharma added.
UFlex currently has a large manufacturing facility for a range of packaging materials at Dubai under its subsidiary Flex Films Middle East.
Aseptic packaging materials, developed to increase the shelf life of liquid products across industries, turned out to be highly advantageous to the beverage industry, which has been fighting the malaise of counterfeiting in many parts of the world.
Foil stamping is an aesthetic rejuvenation technique that is used to make text and patterns on the aseptic liquid packaging stand out, helping products to grab high consumer attention.
Sharma also revealed that the company was already in talks with some of the leading players in the juice and dairy products in the Middle East region for tie-ups for supply of its foil stamping tech product.
Ashwani Sharma, president and chief executive officer of Aseptic Liquid Packaging Business at UFlex.
The juice and dairy products industries are among the largest players in the beverage industry in the Middle East, as well globally.
“We are also exploring tie-ups with leading players in the alcohol and other beverage manufacturers in Africa and other neighbouring countries as we are hopeful of developing new sustainable packaging trends in the region,” he said.
UFlex’s move on a second plant in the UAE comes after it recently announced plans for a major expansion at its Dubai plant.
Apoorvashree Chaturvedi, group director of UFlex Ltd, recently told Arabian Business that the company would be adding an additional cast polypropylene (CPP) manufacturing line with an annual production capacity of 18,000 metric tonnes, and also was evaluating plans for undertaking production of green films at Flex Films Middle East, operating from the Jebel Ali free zone.
Chaturvedi (pictured below) said the expansion and focus on green film production was in view of the growing demand for sustainably packaged consumer packaged goods (CPGs) in the GCC and nearby regions in the post-pandemic period.
Industry experts said a manufacturing plant for 12 billion packs per annum capacity ‘foil stamping’ aseptic packaging material would involve an investment of about $100 million.
The facility can generate a direct employment for about 400 personnel and an indirect employment for three-times of it.
Sharma pointed out that it would make ‘strategic sense’ for the company to locate its proposed plant for foil stamping products at Dubai, as it can leverage a lot of synergy with the existing plant.
UFlex’s proposed plans for a second plant for foil stamping comes amid nearing completion of doubling capacity at its first plant in India.
“We have already sold out our entire earlier capacity and are confident we will soon sell out the additional capacity at the Indian plant,” Sharma said.
In the Indian market, UFlex provides its foil stamping technology feature majorly to players in the alcohol industry.
“Counterfeiting is a major problem faced by the alcohol industry in India, as also in Africa and other countries in the region, and the aseptic packaging material is the best way to counter it,” Sharma said.
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