Hi thanulee,
Here is an example that I have roughly set up based on your image.
Note the order of the Deformers and its setting to keep the Y length.
The sealing is done with a Correction Deformer.
Here you have to make certain to move the Falloff only with the Offset parameters.
I moved the points a little bit towards the center of the package, as the fold down would lengthen the polygons otherwise. I assume that here is your problem, polygon stretching, but assuming and guessing is not really what I like to do here.
Note that stretching any polygon will stretch the texture! The UVW information is connected to it. Since no on is really interested in the texture when it can’t be seen at all, the projection should be done when the object is in its final state. While folding one might see the texture, but motion blur will cover this a little bit up.
As usual, images are nice but not really helpful. A file reduced to the problem is much better. Since I had none, here is my example:
Scene file
https://www.amazon.com/clouddrive/share/qSmjoQxiEhl1mDDBhBkgIGYUuPHHqKquCtHY1XQyDPE
All the best