Q3 FY19-20 Financials and R&D Update
India Industry Dynamics and Capex Strategy
ā Global BOPP demand is
estimated to be approx 8
million MT per annum
The global demand and
supply are broadly
balanced
I
I
C
Currently India BOPP production
capability is estimated at approx.
630k MT per annum.
India domestic BOPP consumption is
approx. 500k MT per annum and
remaining is broadly exported.
Indian BOPP Industry has been
growing at almost double of the
India's GDP growth rate over long
term (except period of
demonetization/GST
implementation etc
Data Source: AMI/PCI/Other Independent Research and
Industry Sources
I
I
I
I
I
Strong domestic and
global demand is
helping efficient
capacity utilisation.
India BOPP Demand & Supply Dynamics:
I
CF
Company's future capex
strategy is aligned with
Considering low packaged food penetration in India and rising
personal disposable income, the Industry is estimated to grow fast.
ā Investment in organized retail industry and change in pack format
from rigid to flexible is going to further add to increasing demand.
Based on capacity addition announced in India, new capacity
expected in the Industry may not be able to address growing India
demand. On current India BOPP Industry demand base, one new line
each year may not be sufficient to address India's growing demand.
target to increase speciality
to 2/3 of volume in next few
year which will majorly de-
commoditized business
model. Accordingly, company
is undertaking low capex but
high margin projects.
In line with strong demand
fundamentals, Cosmo Films
has implemented an increase
in capacity by 60k MT p.a. in
early Feb 2017 with 10.4
meter width state of art
BOPP line, which is one of
the lowest cost producing
line in the world.
12View entire presentation