Published On:November 2 2015
Story Viewed 1757 Times
Cosmo Films to invest Rs. 220 crore on Gujarat, Maharashtra plants expansion.
Cosmo Films Limited, a manufacturer of bi-axially oriented polypropylene (BOPP), said it plans to invest Rs 220 crore to expand capacity at its Gujarat and Maharashtra facilities.
'We are installing a new BOPP line with 60,000 tonnes per annum (tpa) capacity by early 2017 at our Vadodara facility in Gujarat. The cost for the said expansion is estimated at Rs 200 crore.
'We are also adding cast polypropylene line at our Maharashtra facility at a cost of Rs 20 crore,' Cosmo Films CEO Pankaj Poddar told PTI.
The project will be funded through debt and internal accruals. The line has already been ordered and will increase the company's annual BOPP production capacity to 2,00,000 tpa, Poddar said.
The demand for BOPP film is growing at 12-15 per cent per annum. The company is anticipating a strong demand for BOPP films in the coming years, especially from the FMCG sector, which prompts it to expand its BOPP production capacity.
The output for the production unit intends to be used for both domestic and export markets.
'Our expansion plans are also aligned with government's 'Make in India' project which aims at boosting home grown manufacturing companies,' he added.
BOPP films, which offer high strength, elasticity, high barrier properties, resistance to various corrosive environments and inertness, are used in making flexible food packaging, adhesive tapes, labels and lamination applications.
The company is the largest exporter of BOPP films from India and is also the largest producer of thermal laminating films in the world with plant-cum-distribution centres in the US, Korea and Japan and global channel partners in more than 50 countries.
Cosmo Films had set up a US subsidiary with a dedicated sales team, and manufacturing facility in order to cater to the fast growing US market.