Max Ventures subsidiary invests Rs50cr in new CPP line

The new CPP Line expansion will be funded entirely through internal accruals.

May 17, 2021 03:05 IST India Infoline News Service

Max Ventures & Industries Limited’s (MaxVIL) subsidiary Max Speciality Films Limited (MSFL), which manufactures specialty packaging films will be investing up to Rs50cr in a new CPP Line which will have a capacity of 7.2 KTPA (Kilo Tonnes Per Annum).

As per the regulatory filing, the new CPP Line expansion will be funded entirely through internal accruals. Work on the CAPEX will commence in Q2FY22 and is expected to be commercialized in Q2FY23. Demand for CPP Films has been robust and expanding the capacity will enable MSFL to cater to the growing market for such films. Apart from the robust demand these films enjoy, they will also further enhance the sustainability factor of MSFL as these films are easier to recycle.

MaxVIL said that from the onset of FY21, MSFL has witnessed robust demand for its packaging films which have continued to improve quarter on quarter leading to strong revenue and profitability growth. This demand is led by the increasing preference of customers for packaged products as hygiene and safety has taken over priority during this pandemic.

Before this CAPEX, MSFL had announced the commercialization of the first of its two planned metallizer lines which enhances the speciality product capabilities of MSFL. With the expansion of this new CPP line combined with the increasing speciality product capabilities, MSFL is well placed to capture the new growth opportunities enhancing the scale of the business and at the same time sustainably improve its profitability through a better product mix.

On Sensex, Max Ventures finished at Rs62.45 per piece up by 4.34%.

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