Packaging around the world has evolved multi-fold over the last couple of decades.The industry has transformed to embrace a myriad of different forms of packaging ofwhichflexible packaging has been the most popular.Cosmo Films has grown leaps and boundssince it was established in 1981. Today we are one of the worlds largemanufacturers of Biaxially Oriented Polypropylene (BOPP) Films a widely accepted rawmaterial used by the flexible industry globally. We are not only the leading BOPP filmsexporter from India but also the worlds largest manufacturer of thermal laminationfilms. In India we have a reasonable market share in the BOPP industry and lead theindustry for value added speciality films .
Financial Year 2016 has been one of the best years in the history of Cosmo Films.Consolidated sales stood at Rs. 1616 Cr representing an 8% growth in sales.FurthermoreEBITDA rose approximately 80% to Rs. 197 Cr.During the year we not only remained focussedon driving cost efficiencies across our global operations but also implemented a number ofmarketing initiatives to increase the sales of higher margin products in specialty films.efforts consolidated profit after tax expanded more than operations have also improvedfrom last year as a result of several strategic initiatives taken.
Strategic focus area for the company remains value added speciality films and we lookforward to increase its share in future Continued strong global demand for BOPP films isanticipated in the coming years and as a result have initiated a capacity expansionprogram to support it. A new BOPP film line will be installed increasing BOPP productioncapacity by approximately 40%from 136K MT to about 200K MT by the end of FY2017.
This next level of growth and leadership will not be possible without continued supportfrom a strong R&D function. The team has taken several strides in product developmentover the years and won awards such as Indiastar IFCA STAR and PFFCA STAR. We are nowfocussed on taking Cosmos specialty films portfolio to the next level. Other focusareas include identifying opportunities in down gauging products and in reducing thecarbon footprint. To fully leverage the R&D teams capability we are in theprocess of hiring more R&D heads and strengthen each vertical as also setting up astate of art R&D to complement their efforts.
As Cosmo Films become larger its social and environmental footprint expand as well areminder of our responsibility & commitment towards the society we operate in.Corporate Social Responsibility (CSR) is the heart of our strategy. Cosmo Foundation haspartnered with several Government Primary and Grant-in-aid Schools Gram Panchayats Blockand District Panchayats and non-profit groups to teach Basic Computers skills ArithmeticEnglish communication and general life skills to marginalized children and youth aroundthe facilities of Cosmo Films in Karjan Vadodara. Other initiatives such as hygieneetiquettes basic qualities ensure over all personality development. 3100 students werebenefitted through these programs last year and since its inception we had a total of15040 beneficiaries.Cosmo Foundation is also an active member of the District CSR CellVadodara. It is heartening that we were conferred the "National Award for Excellencein CSR and Sustainability Best Education Improvement Award 2015".
Our CSR initiatives are complemented by our efforts towards green environment and wastemanagement. During the financial year we not only fully replaced solvent based coatingswith water based coatings but also planted trees across our three EMS complaintmanufacturing plants. As a part of the 3R Philosophy (Reduce Recycle and Reuse) wastagewas reduced to a large extent.More than 90% of this waste is converted into granules to bereused as raw material in our manufacturing processes.In addition we reduced consumptionof paper core primarily by increasing the consumption of plastic core for in housepurposes. We take pride in our contribution towards conserving energy & naturalresources and enabling reduction in greenhouse emissions.
In conclusionI would like to reinforce that Cosmo Films management team stayscommitted to the highest standards of corporate governance operational excellence andfinancial discipline for long term shareholder value creation. I look forward to the manymilestones that Cosmo Films aims to conquer in pursuit of its corporate mission.
Chairman and Managing Director