The new line will be commissioned at the Waluj plant site in Aurangabad, Maharashtra, India with a capacity of 30,000-MT per annum. This plant already houses BOPP lines, extrusion coating lines, chemical coating lines, metallisers, and a CPP line. The new production line will complement the existing BOPP capacity of 200,000-MT per annum and allow Cosmo Films to offer a more comprehensive specialty product basket for flexible packaging, labelling, lamination, and industrial applications.

The project cost is estimated to be Rs 300-crore, which will be financed through a mix of internal accruals and loans. The company’s key financial parameters for the quarter ended June 2020 are well placed — Debt/EBITDA at 1.8 times and net debt to equity at 0.7 times.

Pankaj Poddar, CEO, Cosmo Films, said, “Speciality BOPET is a niche segment which caters to multiple application segments, with high margins and opportunities for import substitution as well as worldwide exports. The new specialty BOPET line shall be unique and a majority of the products made on the line would focus on sustainability and the creation of a greener future as the key theme. The debt/EBIDTA and other financial ratios expect to remain in a comfortable range even post the CAPEX.”

BOPET films (Biaxially-Oriented Polyethylene Terephthalate films) offer high tensile strength, chemical and dimensional stability, transparency, reflectivity, gas and aroma barrier properties, and electrical insulation.