Cosmo Films announces CPP film expansion; stock zooms 3%

31 Mar 2022 , 12:46 PM

Cosmo Films Limited announced expansion by setting up a CPP film production line at Aurangabad with annual rated capacity of 25,000 MT.

Commenting on the CPP line project Mr. Pankaj Poddar, CEO, Cosmo Films Ltd 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,” Pankaj Poddar added.

The CPP line will require an investment of about Rs140 crore to be funded through internal accruals and debts and is expected to commence commercial production in 2 years.

The stock is currently trading at Rs1,758.40 up by Rs57.35 or 3.37% from its previous closing of Rs1,701.05 on the BSE. The scrip opened at Rs1,713.95 and has touched a high and low of Rs1,791.05 and Rs1,713.95 respectively.