Established in 1981, Cosmo Films Limited today is one of the leading global players in speciality films for packaging, lamination and labeling applications. In this interaction with IPF, Pankaj Poddar, CEO, Cosmo Films Ltd elaborates on the emerging trends in the packaging films industry and his company’s plans to tap new opportunities. 

 

Kindly brief us about Cosmo Films

 

We provide products such as biaxially oriented polypropylene (BOPP) films and cast polypropylene (CPP) films. Very soon we will offer biaxially oriented polyethylene terephthalate (BOPET) films. Today, the company is the largest exporter of BOPP films from India and is also the largest producer of thermal laminating films in the world. 

 

Apart from the widest portfolio of speciality BOPP and CPP films, our customers recognise us for the customised innovation that we provide them as part of our strategic relationship and the customer centric approach. Our global distribution network spread over seventy plus countries helps us service customers across the globe.

 

Cosmo has five state-of-the-art manufacturing facilities spread across India, the US (at Hagerstown, Illinois) and Korea (at Asan). In India, our facilities are located at Waluj (Aurangabad), Karjan (Vadodara), and Shendra (Aurangabad). In terms of business, packaging accounts for 60 percent of Cosmo Films' revenues, while lamination and labels contribute 30 percent and 10 percent, respectively. 

 

In June 2017, Cosmo Films launched direct thermal printable products. What is the significance of this for the company? What is the potential of these products?

 

The company has recently launched top coated direct thermal printable film which goes in for all information, track & trace labeling applications. The product is water and solvent resistant, has matte paper like appearance and can endure temperature range of -20 to 70°C. A high temperature variety which can endure temperatures of -20 to 130°C has also been launched. This variety is mainly used for carcass tagging and deep freeze labeling. Economic non-top coated variety is also available.

 

Sustainable packaging is gaining momentum globally. How is Cosmo Films responding to it? 

 

To begin with, both our product offerings at the moment that is BOPP and CPP films are recyclable in nature and support homogenous laminate structures which are again easy to recycle. Some of the other key initiatives taken in this direction are support to down gauging; oxo-biodegradable films; support to water based ink printing; and use of 100-percent water based coatings. In addition, the company has installed effluent treatment plants at its manufacturing units. At its production facilities, Cosmo Films uses natural lighting, water recycling and rain water harvesting systems.

 

What is driving the demand for BOPP specialty films?

 

According to a recent report, BOPP film industry is poised to grow well, riding on the growth in modern retail and growing consumption of packaged food and beverages globally. As per industry figures, global market and Indian market are growing at 4-5 percent and 12-15 percent respectively. Speciality BOPP films can be defined as films which are niche in nature and address specific functional needs of the industry whether used for packaging, labeling or lamination. These films are gaining much importance in every market whether matured or developing. Need for enhanced shelf life requirements for food packaging; light weight packaging to reduce cost & waste; shifting from wet lamination to thermal lamination; luxury packaging to offer rich aesthetics to the products; and films replacing paper in the pressure sensitive label industry for aesthetics & longevity are some of the factors boosting demand for BOPP films. Shift from paper to synthetic paper for longevity & save trees and therefore, carbon footprint, is another growth driver.

 

Are you seeing a jump in demand for standard BOPP films after waning of demonetisation effect?

 

The demand for BOPP films is certainly growing but the growth rate has slowed down quite a bit. Against an expected growth rate of 12 percent, industry has grown by 4 percent only in the last 10-12 months. 

 

Could you please elaborate on your diversification plans (with respect to CPP films, PET line and other)?

 

We have announced plans to install a new production line for speciality polyester (biaxially-oriented polyethylene terephthalate) films by the last quarter of 2018-19.The new line will be commissioned at the Waluj plant site in Aurangabad, Maharashtra, with a capacity of 30,000 MT per annum. This facility already houses BOPP lines, extrusion coating lines, chemical coating lines, metallisers and a CPP line. The new production line will complement the existing BOPP capacity of 200,000 MT per annum and allow Cosmo Films to offer a more comprehensive product basket to flexible packaging and labeling manufacturers. 

 

We are also augmenting the present capacity of CPP films from 1800 MT to 6800 MT. A new line is planned to be installed at existing facility in Waluj, Maharashtra before the end of this year.

 

With respect to R&D, what are your focus areas? Are you planning to expand your R&D activities?

 

We are in process of hiring separate R&D heads for each of our sales vertical. We have recently set up a state-of-the-art R&D lab to complement their efforts. So now, we have R&D labs (one each in India and the US) with most sophisticated equipment. Some of the activities that the R&D team is currently working on include identifying technical (product/applications) growth areas; Increase the occupancy of value adds in the products baskets and efforts towards down gauging in our products (reducing consumption of raw materials & fuel and thereby reducing our carbon footprint). Besides, we are developing biodegradable films to make the degradation of used BOPP films faster and in an environmentally friendly manner. Work is also on to support water based ink printing and complete replacement of solvent-based coating with water-based coatings.

 

What are the emerging trends in packaging & packaging material sector?

 

The packaging sector is in a constant state of flux as brands are engaging with customers like never before. Packaging is playing a pivotal role in helping brands differentiate their product offerings. Flexible packaging is the order of the day and is resulting in increasing packaging film consumption.  BOPP films are a preferred option owing to its lower cost, versatility as well as environmental friendliness. 

 

Some of the broader trends in packaging industry are light weight packaging (to reduce cost & waste); enhanced shelf life packaging (especially where companies are looking to develop a global portfolio); on-the-go packaging (packaging that is easy to hold, open, use and reseal because of lifestyle changes); packs designed for digital shelves with labelling that can double up as a billboard; and sustainable packaging (though cost effective sustainable alternatives are yet far and few).

 

Digitalisation, automation, Industry 4.0, etc are the buzzwords in today's manufacturing arena. How is Cosmo Films adopting them in its manufacturing facilities?

 

We are also taking advantage of these technological advancements and have adopted them in our manufacturing facilities. We have incorporated automation in BOPP manufacturing process, non-contact type thickness measurement & control in close loop. We ensure complete synchronisation of manufacturing from raw material feeding to final mill roll production. Inventory management through barcoding & RFID helps us to reduce the loading & unloading time of materials and provides complete traceability. 

 

We use PLC, sensory measurement, HMI, SCADA, Profibus etc for automation of manufacturing process. The company has enhanced machine productivity with in-house machine upgradations. With automation, all key performance indicating reports such as conversion ratios (input v/s output), handovers, downtime and overall customer delivery time are shared with the concerned teams. Implementation of CRM (customer relationship management) system provides customers with complete visibility of stage wise progress of order from order receipt to cash.

 

Business intelligence tool ensures availability of all decision enabling business reports which help in real time decision making. Effective online supplier performance evaluation is done through SAP for better and consistent product quality and services.

 

The company plans to implement the planning automation tool including for raw materials requirement. We are also in process of adopting manufacturing execution system (MES) which will provide all the real time controls to the run the lines with maximum throughput.

 

What are your expansion plans? What are your short & long term growth targets?

 

We have already made an announcement for setting up of a speciality BOPET line expected to be installed by end of FY18-19. This is our first foray into PET based products and will come with an investment of Rs 250 crores. The two new lines already planned for the next two three months include a new CPP line and a metalliser.

 

As far as medium to long term targets are concerned, we do keep a look out for expanding in related areas of growth and have already announced acquisitions of 34 acres of land in Aurangabad, Maharashtra and 11 acres land in Karjan, Gujarat close to our existing plants with expansion on our mind.