Cosmo Films, a manufacturer of bi-axially oriented polypropylene (BOPP), today said it will raise up to Rs 100 crore through Qualified Institutional Placement (QIP) route.
“The board of directors of the company have approved...
raising of funds up to Rs 100 crore (including premium) through Qualified Institutional Placement (QIP) of equity shares and/or any other eligible securities,” Cosmo Films said in a BSE filing.
Last month, the company had said it plans to invest Rs 220 crore to expand the capacity at its Gujarat and Maharashtra facilities.
“We are installing a new BOPP line with 60,000 tonnes per annum (tpa) capacity by early 2017 at our Vadodara facility in Gujarat. The cost for the said expansion is estimated at Rs 200 crore.
“We are also adding cast polypropylene line at our Maharashtra facility at a cost of Rs 20 crore,” Cosmo Films CEO Pankaj Poddar had told PTI.
The project will be funded through debt and internal accruals. The line has already been ordered and will increase the company’s annual BOPP production capacity to 2,00,000 tpa, Poddar had said.
The demand for BOPP film is growing at 12-15 per cent annually. The company is anticipating a strong demand for BOPP films in the coming years, especially from the FMCG sector, which prompts it to expand its BOPP production capacity.
The output for the production unit intends to be used for both domestic and export markets.
BOPP films, which offer high strength, elasticity, high barrier properties, resistance to various corrosive environments and inertness, are used in making flexible food packaging, adhesive tapes, labels and lamination applications.
The company is the largest exporter of BOPP films from India and also the largest producer of thermal laminating films in the world with plant-cum-distribution centres in the US, Korea, Japan and global channel partners in more than 50 countries.