Packaging film manufacturer Cosmo Films intends to expand its production facilities in the Indian states of Gujarat and Maharashtra with an investment of approximately Rs2.2bn ($33.5m).
The firm has planned to install a new line for biaxially oriented polypropylene (BOPP) production at its Vadodara facility in Gujarat by 2017. The proposed installation is expected to cost around Rs2bn ($30.5m).
Cosmo Films expects to raise its annual BOPP production capacity to 2,00,000t, with the new line generating around 60,000t.
The remaining Rs200m ($3.05m) has been planned to be spent for installation of a cast polypropylene line at the firm's unit in Maharashtra.
Cosmo Films CEO Pankaj Poddar was quoted by the Press Trust of India as saying: "Our expansion plans are also aligned with government's 'Make in India' project, which aims at boosting home grown manufacturing companies."
The firm intends to deliver the additional production to both domestic and export markets.
BOPP films offer elasticity, high-strength and high-barrier properties, which make them suitable to be used for flexible food packaging, adhesive tapes, labels and lamination applications.
Demand for such films is on a gradual rise at around 15% every year.
Poddar had earlier said: "We are anticipating a strong demand for BOPP films in the coming years, especially from the FMCG sector, which prompts us to expand our BOPP production capacity."
Image: BOPP films offer elasticity, high-strength and high-barrier properties suitable for flexible food packaging. Photo: courtesy of Mister GC via freedigitalphotos.net.