Cosmo Films will re-commence the installation of a speciality polyester films line (BOPET) 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 speciality product basket for flexible packaging, labeling, lamination and industrial applications.
The project cost is estimated to be 300 crore INR (41 million USD), 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 with debt/EBITDA at 1.8 times and net debt to equity at 0.7 times.
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 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.