Cosmo Films sets up China distribution hub

Cosmo Films, a manufacturer and supplier of packaging, label, specialty films and print lamination, finalized an agreement to set up a distribution center in China during the recent Labelexpo Asia.

Sandeep Kumar Dutta, general manager, marketing, global head – speciality films, Cosmo Films

Displaying some of its new products targeted at the international market, the company got a good response at the show. Cosmo Films is focusing on direct thermal printable films. Sandeep Kumar Dutta, general manager, marketing, global head – speciality films, Cosmo Films says, ‘This product is water and chemical resistant. There are only four to five manufacturers in the world of such products so we received a very good response at Labelexpo Asia. It is a niche product and extremely expensive. But we want to take this technology to market and make it available to masses.’

Labelexpo Asia took place on December 3-6 in Shanghai.

The company has been exporting 100 tonnes of material to China every month. Though the export started last year, Cosmo Films sees good potential in the country. ‘We are targeting a particular segment which is confined to certain area and amongst few large business houses. We see growth coming in PSA segment and there is business in cities such as Shanghai, Guanzhou, and Gengsu,’ says Dutta. ‘Chinese are working around commodities segment but we don’t see much competition here in speciality segment.’

Cosmo Films dominates the Indian market in wraparound films. ‘But in China, we were taken down by prices because there are products available here at much lower prices,’ Dutta says. However, he points out, ‘We have been able to find out pain areas in China and there have been encouraging results. Niche products and those with value will sell in China.’

Talking about the trend in films, Dutta opines that films are now as thin as they can be. He says, ‘Different technologies and innovation will be more and more involved in reduction of cost.’

Cosmo Films has four plants in India. For future expansion of manufacturing facilities, it will look at locations which are not a cost centre. ‘We may evaluate China when we plan to open our next plant. Any location where it’s reasonable for us to manufacture and ship out the products will be considered.’

Though Cosmo Films supplies about 60 percent of material in volume to Indian companies, 60 to 65 percent of its turnover comes from exports to countries including Europe, U.S., Middle East, West Africa, South America, Australia, New Zealand and Japan.