Massive Fire at the Jindal Poly Films Factory May Hamper the BOPET and BOPP Films Production

INDIA: The world's largest facility for producing Biaxially-Oriented Polyethylene Terephthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) Films, Jindal Poly Films, has experienced a significant fire at its Mundhegaon unit along the Mumbai-Agra highway in Igatpuri taluka. The boiler exploded after catching fire in its diesel tank, which caused the tragedy. However, the production process was momentarily interrupted, and as a result of the incident, a material valued at lakhs of rupees was destroyed.

In Nasik, Maharashtra, Jindal Poly Films operates the world's largest BOPET and BOPP Film manufacturing facility. The demand for BOPET Film in India is satisfied by leading manufacturers such as Jindal Poly Film Limited, Vacmet India Limited, Ester Industries Limited, and Chiripal Poly Film Limited. In 2022, from a total production capacity of 772.5 KTPA when integrating various additional manufacturing facilities, Jindal Polyfilms' production capacity 2022 was approximately 171 KTPA. Additionally, the installed BOPET Film capacity in India was approximately 770 000 tonnes in FY2022 and is estimated to reach nearly 945 000 tonnes by FY2032.

Since Jindal is the world's largest BOPET and BOPP Films production facility, any unfavorable outcomes could negatively affect the pricing trend for both BOPET and BOPP Films. BOPET and BOPP Films prices in India have decreased over the last eight weeks due to adequate product supply and low demand. The post-holiday stockpiling of businesses in the packaging industry chain will get underway as the New Year's break comes to an end. Also, any unfortunate incident inside the operating unit might cause a disruption in production capacity. As a result, it is anticipated that the price of BOPP Film and BOPET Film may rise in the Indian market after the tragic fire at Jindal Poly Films.

Considering the accident at the Jindal Poly Films production facility, the Analyst also predicts of increment in price due to the temporary disturbances in its production operation amidst healthy demand outlooks.