Packaging companies optimistic about FY27 growth outlook despite raw material volatility amid West Asia crisis
Firms expect growth to be driven by domestic demand, capacity expansion and better product mix even as raw material costs, logistics issues and export uncertainty weigh on near term performance
India, June 08 : India’s top packaging solution providers are currently dealing with higher input costs, supply chain bottlenecks and export challenges triggered by ongoing geopolitical tensions in West Asia. Despite these headwinds, industry leaders continue to express confidence in a stronger growth trajectory in FY27, supported by rising domestic consumption, expansion in production capacities and improved product diversification.
Executives from leading listed companies, during recent earnings discussions, highlighted that instability in West Asia has disrupted supplies of key petrochemical based inputs while also pushing up freight and logistics expenses. These factors have created short-term pressure for the sector, which caters to FMCG, personal care, pharmaceuticals and food industries.
EPL Ltd Managing Director and Global CEO Hemant Bakshi noted that the ongoing crisis has impacted both availability and pricing of essential raw materials. He said the company is actively managing the situation through a structured supply strategy and prioritising uninterrupted deliveries to customers. He also pointed out that a significant share of EPL’s contracts include pass-through pricing mechanisms, helping mitigate cost fluctuations. The company remains focused on strengthening its presence in the beauty and personal care packaging segment across high-growth markets.
In the flexible packaging space, Uflex has also acknowledged rising cost uncertainty linked to geopolitical instability. The company’s Executive Vice President (Finance), Sumeet Kumar, said it is still early to quantify the overall impact on profitability as conditions remain fluid. However, he maintained a positive long-term outlook, supported by structural demand drivers such as rising incomes, urbanisation and evolving consumption patterns. He further indicated that FY27 is expected to outperform FY26, aided by better utilisation of new capacities, portfolio optimisation and additional expansions coming online.
Meanwhile, TCPL Packaging reported disruptions in export shipments during the last quarter due to shipping constraints arising from the regional conflict. While international operations faced pressure, domestic demand remained resilient and continued to outperform broader consumer trends, helping offset external weaknesses.
Executive Director Akshay Kanoria stated that although some improvement has been seen following easing of shipping disruptions, uncertainty in global logistics continues to persist. He added that while inflationary pressures, fuel costs and currency movement may influence near-term consumption, domestic demand conditions remain healthy, with expectations of sustained growth in the coming year.
