Uniloy invests $1M in India to build its own facility

New Delhi — Blow molding machinery maker Uniloy Inc. is investing $1 million to expand in India and move to a new factory that will, in time, double its capacity there.

The Tecumseh, Mich.-based company, which separated from former parent company Milacron Holdings Inc. in 2019, is exiting a facility it's shared with Milacron and is moving into its own space.

In April, it will occupy a rented facility in the western Indian city of Ahmedabad. Over the next 18 months, it will build its own factory, company officials said at the Plastfocus trade show in New Delhi, Feb. 1-5.

"We will move to our own site in the next 18 months in Ahmedabad, investing approximately $1 million in India, which includes investment in the current rented plant and the all-new site later," said David McIver, managing director for Southeast Asia.

"We have seen potential and opportunity in the Indian market during our presence in the last 15 years," he said. "Now the time has come when we should have our own facility to cater to this market better."

Uniloy supplies an average of three lines per month, or about 36 lines annually, but wants to target 60-70 lines a year with the expansion.

"The focus will be on doubling sales in India when the new site becomes functional," McIver said.

Currently, the company operates sales and service offices in the cities of Ahmedabad and Haridwar.

Uniloy has installed more than 130 lines from its site in India. It will continue supplying its UMS series, including the UMS 70, UMS 100LS, UMS 140 and UMS 220 models, with applications in consumer goods, dairy and juice bottles, lubricants, agrochemicals and pesticides, and medical and pharmaceuticals. It also offers turnkey projects providing machines, molds and auxiliaries.

Uniloy currently supplies standard hydraulic lines in India but could launch all-electrics if the market supports it.

"There is a substantial price difference in hydraulic and all electric lines," McIver said. "We will consider it if the customer is willing to pay the price."

Despite the price sensitive nature of the Indian market, Uniloy said it's going ahead with the investment.

"We know our machines are expensive but technology has a price," he said. "We have seen customers pay for technology and application. The Indian market is changing and the customers' outlook is also transforming. Customers are now willing to pay for technology and versatility in applications."

The company aims to triple its workforce once its own site becomes operational. The rented Ahmedabad facility will have 40-50 employees but its headcount would rise to 150 people once it moves to the new plant.

From India, the company serves overseas markets in the Middle East and Africa, and with the expansion, it's also pondering supplying North America. Uniloy has already received orders from the U.S. market.

"Once the new plant becomes operational, 70 percent of the production will serve the domestic market and the remaining 30 percent would be exported to various overseas markets," McIver said.

The company has previously said it was assessing locations in Southeast Asia and Latin America, as well as expanding in India.

In an interview at K 2022 in Germany, executives said the company was expanding in the United States with its purchase of Century Die Co. LLC in Ohio, as well as looking for opportunities globally for growth in blow molded packaging.

Uniloy had previously transitioned its U.S. operations from a shared Milacron location to Tecumseh. In 2020, Uniloy executives had hoped to shift the India operations from the Milacron site by the end of 2021.

Uniloy's core technologies include the UR reciprocating series machines, industrial blow molding machines; UAI accumulator head and UCI continuous extrusion, UIB injection blow molding machines and all-electric continuous extrusion shuttle lines.