Cosmo First Set to Expand BOPP Film Business With USD 60 Million Investment

Recently, Cosmo First, a global manufacturer of specialty films such as Biaxially Oriented Polypropylene (BOPP) Film for packaging, lamination, and labeling, has announced plans to invest USD 6,09,49,200 in capital expenditures (capex) over the next two years. A significant portion of this investment will be dedicated to the expansion of its BOPP Film and other films business, Zigly, as well as the growth of its film vertical.

Currently, Cosmo First operates three business verticals, including packaging, chemicals (Cosmo Speciality Chemicals), and the direct-to-consumer (D2C) start-up Zigly. Along with increasing its production capacities, the Company may also venture into the rigid-digital packaging segment as part of its BOPP Film business expansion by the next quarter of this year. Additionally, the C=company plans to manufacture rigid packaging for the Fast-Moving Consumer Goods (FMCG) industry using thermoforming and injection molding technologies, primarily utilizing Polypropylene. Presently, the Company operates four BOPP Film manufacturing plants, with three located in India (two in Aurangabad and one in Vadodara) and one in Korea, primarily serving the markets of Korea and Japan.

Cosmo intends to achieve a group turnover of approx. USD 600 million and USD 700 million in three years through the BOPP Film market. It anticipates that a mix of new and established businesses will drive the growth.

During this week, the price of BOPP Film 30 Micron Ex-Depot Delhi-NCR (India) remains unchanged, with prices hovering at USD 1761/MT. The price of feedstock Polypropylene remained the same during this week and supported the price trend for the product. Additionally, the BOPP Film market is Experiencing stability across the globe as the price of product rollover this week in USA and Germany as well.

This expansion of Cosmo First will strengthen the supply of BOPP Film in the Indian market as well as the international market as Company exports the product to Korea and Japan. This expansion will also drive the market of feedstock Polypropylene in India.

According to ChemAnalyst, the price of the product may increase in the second half of April 2023 as this expansion may help to increase the demand for feedstock polypropylene, which may further impact the price of the product.