Cosmo Films: Growth through Expansion, Diversification, and Sustainability

Cosmo Films over the years has grown into one of the world’s largest speciality films business offering a comprehensive range for flexible packaging, lamination, labeling and industrial applications, including films such as high barrier films, velvet lamination films, and synthetic paper. With 4 state-of-the-art manufacturing facilities spread across India (with more than 120 acres at Aurangabad & Vadodara) and Korea, the company’s customer base currently is spread in more than 100 countries

My primary vision for the company was to see it expand and grow multi-fold not just in our own sector but other sectors as well while adapting industry leading practices as well as being sustainable in the process along with returning back to the community we live in. All our efforts have been keeping in mind these larger goals.

We invested a lot of energy and focus on the research and development wing to create product solutions, which are not just innovative and unique, but also environmentally viable. We dedicated an entire building at one of their new sites at Waluj, Aurangabad to R&D which includes a product application centre, a pilot line, synthesis facilities, and other state of the art equipments Through our efforts, we currently holds nine patents for our products; with six in India and three in the US with several more in the pipeline.

Diversification into new business

With a dream of becoming a large Indian conglomerate in the near future, we as a company have diversified into several new businesses over the last few years.

India is one of the largest exporters of textiles globally and is growing exponentially. With the coupled increase in the textile industry, there has been a rise in the textile chemicals industry as well. We saw this as a potential opportunity grow and expand and diversified into the manufacture of masterbatches and specialty textile chemicals under the subsidiary, ‘Cosmo Speciality Chemicals’ in 2020

In a short time, the company has launched close to 40 products for the textile industry, which are completely eco-friendly and are GOTS certified. Under the same subsidiary, the company is planning to expand to Industrial Adhesives as well, by the next quarter.

[box type=”success” align=”” class=”” width=””]In the B2C space, the company recently ventured into the pet care category, with its brand ‘Zigly’. It is the first omnichannel, one-stop-shop for pets and pet parents for anything their fur buddies need. Be it a vast range of products or services like grooming, veterinary care, behavior training, and pathology, one can easily find everything at Zigly. The company recently launched its first experience center in East of Kailash, New Delhi in September 2021, and plans to open at approximately 150 new stores in the coming 4-5 years.[/box]

Scaling up Films Business

With several expansions and diversifications in different verticals and sectors, we are also expanding our films business to achieve new heights. A new BOPET film line will be commissioned by the 2nd quarter of 2022, and this will help the company expand its bandwidth into specialty BOPET films as well.

Our research show that the market trend is predicted to gain traction in the anticipated years because BOPP films are more flexible and enable faster packaging with advanced sealing properties as compared to other packaging materials.

Cosmo Films has also announced the commissioning of the world’s largest BOPP film production line at Aurangabad, India, with an annual rated capacity of 67,000 metric tons. The BOPP line will require the investment of about 350 crores INR (47.5 million USD). This will greatly help the company to ramp up the production and sales for its BOPP-based specialty films.

In terms of financial growth, the company’s PE multiple is improving from 4 a few years back to 10, though it is still a significant undervaluation, and the company’s Crisil rating has seen a major improvement, and has reached to AA-, which shows the stability the company has in the market. Backed by strong financial performance, the company has also declared first interim dividend of 25 INR (0.34 USD) per share for FY2021-22.

[box type=”info” align=”” class=”” width=””]Cosmo Films, as a company, is growing in leaps and bounds, and with current and future expansions on their way, I believe that the company will soon make its mark in becoming one of India’s biggest conglomerates. [/box]

Cosmo Ferrites – Limitless growth possibilities

We have been in the ferrites business since more than 30 years Cosmo films has been one of the pioneer in the manufacturing and production of soft ferrite cores in India. We are present in more than 50 countries across Europe, Asia, North America, Latin America and Oceania.

Traditionally China has been India’s biggest supplier of soft ferrite cores, an equipment essential in most electronic devices. However, due to the recent trade agreement issues with China, the demand for Indian made soft ferrite core has increased drastically. Moreover, the rise in electric vehicle and solar panels has also seen a considerable increase in the ferrite market.

All this coupled with continuous research and innovation, Cosmo Ferrites has grown considerably has increased production to meet the demand. I see a lot of growth opportunity in this market and we as a company look forward to all the possibilities.

[author title=”” image=”http://”]Mr. Pankaj Poddar, Group CEO – Cosmo Films, Cosmo Ferrites, Cosmo Speciality Chemicals, and Zigly [/author]

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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