Packaging Firms Remain Upbeat on FY27 Growth Despite Raw Material Volatility Amid West Asia Crisis

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.

However, he expressed confidence about the industry's long-term outlook, citing rising incomes, changing consumer behaviour and urbanisation trends across key markets.

"The company expects FY27 to perform better than FY26, driven by improved utilisation of recently commissioned capacities, product mix optimisation and additional capacities expected to come online during FY27," Kumar said.

Paperboard and carton packaging manufacturer TCPL Packaging also reported export disruptions in the fourth quarter due to shipping challenges linked to the West Asia conflict.

However, its Executive Director Akshay Kanoria said the company's domestic business continued to perform well, with volume growth outpacing broader consumer market trends in India, helping offset weakness in export markets.

"Shipments were affected by disruptions in West Asia. Post the ceasefire, things have improved with some more vessels sailing, but the situation is highly uncertain and difficult to have any outlook as such," Kanoria said.

He said the company remains optimistic about a recovery in exports if the situation normalises, adding that any rebound could be swift.

On the domestic front, Kanoria said the demand remains healthy, although rising fuel prices, rupee depreciation and broader inflationary pressures could affect consumption trends in coming quarters.

"As of now, we have no problem in terms of demand. We do expect to have a good year for the domestic business as well," he added.