Cosmo Films, one of the largest manufacturers of biaxially-oriented polypropylene (BOPP) films in the world, is expected to commence a new line of production of BOPP films in early February, according to sources in the know. The inauguration of the line comes ahead of its earlier projection of March-end.

The new line is expected to have a capacity of 60,000 tonnes per annum (TPA), which will enhance the company’s overall capacity by 40 per cent. Cosmo Films’ overall BOPP manufacturing capacity will move up from the current 1.36 lakh tpa to 1.96 lakh tpa.

This should result in an increase in revenue of ₹400-450 crore per year, added the sources. Cosmo Films’ sales turnover in FY2015-16 stood at ₹1,620 crore.

The production line is being put up at a capex of ₹185-190 crore. This is lower than the original estimate of ₹200 crore. Of this, ₹150 crore will come from bank loans, the repayment of which will be staggered over a long period. The rest of the amount will come from internal accruals, the sources added.

The new line will be of the highest capacity in the world at the time of commissioning and will be the first 10.4-metre wide line in India.

When contacted, the company’s spokesperson, Sukriti, said that as a principle, it does not comment on market rumours. The new line is expected to come to full capacity utilisation in late second quarter of FY2017-18.

The firm has manufacturing units in India, Korea, and the US. It is the largest BOPP films exporter from India and the world’s largest manufacturer of thermal lamination films. It counts PepsiCo, Coca-Cola, Unilever, P&G, CP, Reckitt Benckiser, Nestle, Avery Dennison and Mars among its clients.

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