Cosmo Films Ltd.

About the Company:

Cosmo Films Limited is an Indian multinational corporation that manufactures bi-axially oriented polypropylene films (BOPP) for packaging, label, lamination and industrial applications. The company is headquartered in New Delhi, India.It is the largest exporter of BOPP films from India and the largest producer of thermal lamination films in the world. Its manufacturing units are situated in India, South Korea and the United States with customer base spread across 100+ countries.

Cosmo Films Limited is Pioneer of BOPP Industry in India and one of the global leaders and manufacturers of BOPP Films.With the acquisition of GBC Commercial Print in June 2009, Cosmo is now the world’s largest producer of thermal films.World’s largest manufacturer of thermal lamination films.

Company has Customer base spread across 100+ countries.
Increased its annual capacity by 40 percent, taking it to 1.96 lakh MT per annum from 1.36 lakh MT.
Announced plans to set up a new 10.4 meters wide BOPP line.

Company has most advanced line in the market in terms of width, production volume, power consumption, efficiency and automation.Company launched new products in every segment of its product portfolio, which will improve product mix and improve margin in the coming years.They have also Expanded their product range in direct thermal printable products (High Profit Margin).Company is also Investing Rs.250 Crores for new production line for speciality polyester. ( will start in third quarter of 2018-19.)

Subsidiaries of the Company:

CF (Netherlands) Holdings Limited B.V.
Cosmo Films Japan.
Cosmo Films Singapore Pte Limited
Cosmo Films Korea Limited
Cosmo Films Inc.

Production Facilities of the Company:

Units in India, Korea, & USA with annual installed capacity as follows:

BOPP: 196k MT
Thermal: 40K MT
Coated Specialty Films: 10K MT
Metalized Films: 15k MT

Expansion Projects of the Company:

Company has five state of the art manufacturing facilities spread across India (3), US (1) and Korea (1), with a manufacturing capacity of 196,000 MT per annum of BOPP films, 40,000 MT per annum of Thermal Lamination Films, 15,000 MT per annum of Metalized Films and 10,000 MT per annum of Coated Films.

The Company has recently added a new line for the production of BOPP films at Karjan, Gujarat ahead of its schedule and at capital cost lower than planned. The line is 10.4 meter wide with a capacity of 60,000 MT per annum and is considered to be the most advanced line in India.

The new installed capacity is expected to add an additional 35% to 40% production volume in Financial Year 2018.

Products of the Company:

PACKAGING FILMS.

Print & Pouching films.
Barrier films
Overwrap films

LAMINATION FILMS

Dry (thermal) Lamination films.
Wet (Print) Lamination films.

LABEL FILMS.

Pressure Sensitive Label stock films
Direct Thermal Printable films
In-mould films
Wrap Around label films.

INDUSTRIAL FILMS

Synthetic paper
Tape & Textile Films

Segment wise Revenue breakup:

Segment	Percentage(%)
Packaging	40
Lamination.	29
Label	9
Industrial	22

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Company’s major Clients:

Colgate.
Britannia.
ITC.
Cadbury.
Cipla.
Pepsi
ConAgro Foods
Nestle
Parle
Unilever.

Positives for the Company:

Experienced Management Team.
Focusing on high profit margin Specialty films.
Operating at full capacity.
Recently expanded capacity by 40%. (substantial growth in sales and profit in financial year FY 18)
Has set up the country’s largest BOPP line at one of its existing facilities which is already running at its full capacity.
The new BOPP Line is expected to operate at full capacity from mid of Q2 FY18 and should help improve the profitability.
Expansion project will add Rs. 350cr to topline.
Consistent Dividend Payer.
CMP is Rs.422 and Market cap is around Rs.800 cr ($122 million)
Stock may give very good return in the Long Term.