DELHI, September 2nd, 2020– Cosmo Films Ltd., a global leader in films for packaging, lamination, labeling, and synthetic paper has announced plans to re-commence the installation of a Speciality Polyester Films line (Biaxially-Oriented Polyethylene Terephthalate) by the second quarter of 2022-23.
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, metallizers, 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, labeling, lamination, and industrial applications.
The project cost is estimated to be Rs.300 crores, 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 @ 1.8 times and net debt to equity @ 0.7 times.
Mr. Pankaj Poddar, CEO, Cosmo Films Ltd 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.