Cosmo Films rose 2.95% to Rs 1535.95 after the company's board approved setting up of new production line for biaxially oriented poly propylene (BOPP) film at Aurangabad, Maharashtra with rated capacity of 67,000 MT annually.
The new BOPP line will require an investment of Rs 350 crore and this funding will be met via internal accrual, debts. The line is expected to commence production by FY2024-25.
The company has also declared first interim dividend of Rs 25 per share for FY21-22. At yesterday's closing price of Rs 1491.90 per share, this translates to a dividend yield of 1.68%.
The record date for the said dividend payment is Tuesday, 28 September 2021.
Pankaj Poddar, CEO, Cosmo Films, said With current capacity expected to produce primarily speciality films (80%+) in next two years and projected BOPP film demand growth in India, the company planned capacity expansion which will be world's largest production line with annual rated capacity of 67,000 MT with lowest cost of production.
The company has also recently launched ZIGLY - India's first tech-enabled integrated pet-care platform - through the launch of its website www.Zigly.com and the opening of its flagship experience center in New Delhi. Other growth plans i.e. specialized BOPET line, focused towards growing specialty sales, expanding into Cosmo Specialty Chemicals 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's consolidated net profit increased by 84.55% to Rs 86.72 crore on a 42.87% rise in net sales to Rs 687.60 crore in Q1 FY22 over Q1 FY21.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)