Brent oil prices have fallen below $60 per barrel, a big positive for petchem derivative companies like Uflex. Rajesh Bhatia, global CFO of the company, spoke to CNBC-TV18 about the easing crude prices will help Uflex.

“We are in the packaging as well as the packaging films business. In the packaging space, yes crude prices going up because there is a lag – there is always some kind of a delay in realising the value. However, in the films business, it is instantaneous as the prices are adjusted immediately next day and in the packaging because now the crude is coming down and the monthly or the quarterly average were played to our advantage in this quarter,” he said.

“Crude is also falling constantly in the month of November and that is what dissuades customer from holding on to the stocks because if you have a four-five percent decrease every two-three days, they would not like to build on inventories and all that. That is why it is a bit of a margin pressure that comes into play. But given the demand and supply equilibrium in the Biaxially Oriented Polyethylene Terepthalate (BOPET) industry, that will correct immediately if the prices of the crude stabilises,” he added.

Speaking about the aseptic business, Bhatia said that the company will achieve 1.5 billion packs with respect to volumes from Aseptic Packaging, which would mean about Rs 250-260 crore of revenue.

“We are talking to all the large players, Dabur, Vicco, Parle, Amul and all that. Everywhere the discussions are on and they are extremely positive,” he said.

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