Packaging firms remain upbeat on FY27 growth
India’s leading packaging solution providers are navigating rising raw material costs, supply chain disruptions, and export uncertainties stemming from the ongoing geopolitical tensions in West Asia, but remain optimistic about stronger growth prospects in FY27 driven by domestic consumption, capacity expansion and improving product mix.
Executives from major listed packaging companies in their latest quarter earnings said the crisis in West Asia has disrupted the availability of key petrochemical-based inputs and increased logistics costs, creating near-term challenges for the industry that serves sectors such as FMCG, personal care, pharmaceuticals, and food products.
“The crisis has affected both availability and cost of our key raw materials,” said EPL Ltd Managing Director and Global CEO Hemant Bakshi.
The tube-packaging company, formerly known as Essel Propack, is “proactively navigating” the situation with a clear and structured approach, he said, adding that EPL is prioritising supply security for customers while ensuring that higher input costs are passed through.
“More than 50 per cent of our business comes from contractual customers where there is a clear agreement on pass-through. At this point in time, we are very confident that we will be able to manage the cost impact that we will feel through this crisis,” he said.
Bakshi added that the company remains focused on sustaining growth momentum in the beauty and cosmetics segment and expanding its presence in high-growth markets despite near-term uncertainties.
Flexible packaging major Uflex is also closely tracking the impact of geopolitical developments on margins and costs.
Sumeet Kumar, Executive Vice President (Finance), Uflex Group, said it would be premature to provide a clear estimate of the impact on profitability for the current fiscal year as the situation continues to evolve.
