Cosmo Films gains on plans to expand CPP film production

Cosmo Films added 3.89% to Rs 1767.30 after the company announced the setting up CPP film production line at Aurangabad with annual rated capacity of 25,000 MT.

The CPP line will require an investment of about Rs 140 crore to be funded through internal accruals and debts and is expected to commence commercial production in 2 years.

Commenting on CPP line project Pankaj Poddar, CEO, Cosmo Films, said, "Worldwide significant focus is being given on recyclability & sustainability of packing films. Monolayer structure of CPP and BOPP is most preferred structure to address sustainability requirements.

With current CPP capacity running close to 100% utilization, the company planned capacity expansion with the world's largest width line and lowest cost of production.

Other growth plans i.e. specialized BOPET line, BOPP line, focus towards growing specialty sales, expansion with Cosmo Specialty Chemicals and Zigly are progressing well in line with the plan."

Cosmo Films is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. The company is strategically expanding beyond films into specialty chemicals & polymers as well as pet care business.

The company reported a 65% jump in consolidated net profit to Rs 104.42 crore on a 35% increase in revenue from operations to Rs 771 crore in Q3 FY22 over Q3 FY21.

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