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Quality Pipes from Astral: A Vihan Deliverable
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Cosmo First
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A Scale-up of Sorts
Pankaj Poddar
Group CEO, Cosmo First Ltd., New Delhi
“Cosmo First is all poised to enhance its abilities and capacities across its business of BOPET, BOPP and CPP,” updates Pankaj Poddar, in dialogue with POLYMERS Communiqué.
The Indian packaging market is anticipated to expand by 27% yearly to USD 205 billion in 2025. With increasing demands for consumer durables during the pandemic, there is an increasing scope for production and innovation of packaging products.
Q. To kickstart, what prompted the change of name from Cosmo Films to Cosmo First?
Cosmo has always strived to be ahead, which has helped us build relationships and create growth for all of our stakeholders. Until a few years back, we were more focused towards manufacturing products for packaging and lamination. We have strategically expanded into three different verticals, with more on the way. The entities include Cosmo Films, Cosmo Speciality Chemicals, Zigly (a pet care company), are all part of Cosmo First Ltd., the holding company. Through its many operations, the group has a broad product portfolio that ranges from B2B to B2C and serves a variety of customers across industries. Cosmo First is perfectly aligned to our identity as an organisation with businesses in multiple sectors.
Q. With many significant initiatives in the films business, that also includes the world’s largest BOPP line, how does Cosmo Films plan to capitalise on this investment over the next two years?
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 speciality BOPET films as well.
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 tonnes. The BOPP line will require investment of about Rs. 350 crore (USD 47.5 million). This will greatly help the company to ramp up the production and sales for its BOPP-based speciality films.
We are also commissioning a line for cast polypropylene with an investment of about Rs. 140 crore in Aurangabad. The production line which is to be funded through internal accruals and debts is expected to commence commercial production in the next two years. The new production line for cast polypropylene (CPP) films in Aurangabad will have a rated annual capacity of 25,000 metric tonnes. In Aurangabad, the new production line will result in the addition of 50 new direct jobs and numerous indirect jobs.
Cosmo’s strategic investments are aimed towards capitalising the change in packaging industry trends. Moreover, as an environment conscious business, Cosmo’s values are aligned towards pioneering this shift for sustainable packaging.
Q. In continuation, with recyclability pushing the demand of BOPP films, how do you see your capacities change from where it is today? What is the current capacity utilisation?
Recyclability has become the industry norm when it comes to the packaging sector. The BOPP films used for packaging are made from polypropylene that provide for sustainable packaging without compromising on aesthetics and performance of the pack. Post our expansion slated to be launched in FY 2025, we will reach an annual production capacity of 2.6 lakh tonnes. Our current capacity remains fully utilised, but for any maintenance shutdowns or rare occasions where the line is shut for any specific objective.
Q. As regards speciality films, the vision of Cosmo that you wish to share?
Cosmo First has always believed in running enterprises of the highest caliber that enrich people’s lives, with our principles serving as the institution’s foundation. Cosmo First’s aim is to develop cost-effective solutions in packaging and lamination, polymers, textile chemicals, masterbatches, pet care and other industries. We aim to produce cutting-edge and high-quality goods and services throughout Cosmo’s several verticals by focusing on people and the needs of our customers. This is a step forward in our ambition to pivot our staff for greater growth and better serve our clients. At its core, Cosmo has always been a leader in ground-breaking inventions that improve lives.
Q. “India going global as regards production of speciality films.” Your thoughts on this statement.
The Indian packaging market is anticipated to expand by 27% yearly to USD 205 billion in 2025. While Cosmo Films exports to over 80 countries, the company is diligently working to establish India as a significant hub for packaging materials, in addition to placing the country on the supply chain map for packaging. There is robust demand for packaging within and outside the country. With increasing demands for consumer durables
during the pandemic, there is an increasing scope for production and innovation of packaging products.
Q. Cosmo has been a strong believer in ‘branding’. What approaches do you embark on?
As a four-decade-old global business group with entities such as Cosmo Films, Cosmo Speciality Chemicals, Zigly and Cosmo Foundation, we have always recognised the importance of building quality and credibility for our products. Cosmo has always been at the forefront of ground-breaking ideas which has aided in the brand’s expansion. We have taken great satisfaction in our capacity to offer industry-first specialised solutions in the fields of packaging, laminating and labelling applications throughout our journey. In order to lead these hitherto fragmented industries, we have made inspiring diversifications into speciality chemicals, personal care and direct-to-consumer retail. With unity and trust, we move forward with a people-first approach. Cosmo First has been built on quality, innovation and integrity. Through our values, we provide the best for our customers.
Q. How do you address the issue of sudden spurts in material and freight costs? What was your contingency to address the same?
There is still a lot of cooling down to happen for raw material prices and freight costs. Making accurate predictions has been a little difficult due to the unprecedented occurrences that have affected the global economy over the past two years. However, in light of how we’ve previously performed, Cosmo has succeeded and generated good earnings every quarter. Despite difficulties, Cosmo First is nevertheless upbeat about future demand and anticipates higher profit margins as a result of continuous demand and falling raw material prices. Over the coming quarters, the prices will decrease. It will assist us in freeing up a significant amount of trapped working capital.
We are also commissioning a line for cast polypropylene with an investment of about Rs. 140 crore in Aurangabad and is expected to commence commercial production in the next two years.
Q. Your take on AI and IoT gaining popularity across production lines and their advantages over conventional floor management.
Digitisation has been uplifting the manufacturing landscape. Companies are looking to transform their ecosystems through innovative technology and the internet of things (IoT). This is a step towards making traditional factories into smart spaces. IoT in manufacturing is driving unprecedented disruption and can help make factories safer for frontline workers, increase productivity and efficiency.
Artificial intelligence offers an advanced level of analytics to enterprises that they can use to evaluate the performance of their individual components. The AI-based data analytics is much more effective than the traditional systems and can, hence, be used to boost the overall efficiency of a facility and elevate the production rate. Also, artificial intelligence and machine learning are powerful tools to minimise the consumption of resources and energy in the manufacturing industry by continuous improvement in the present work process.
Some of the IoT and AI advantages include:
l Complete autonomous environment.
l Improved overall efficiency.
l Production forecasting.
l Predictive maintenance.
l Quality management.
Q. How do you see the future of the pet care market? How global is your vision for this segment?
India has over 30 million pets, making it one of the fastest-growing sectors. The pet-care market is anticipated to increase to about Rs. 10,000 crore over the next three years. Cosmo sees this as a huge market opportunity and plans to take advantage of it via their D2C platform in addition to offline experience centres. We have already opened five experience centres in the Delhi NCR region and are looking forward to expanding in other metropolitan cities in our country. Our goal at Zigly is to offer a one-stop solution for all things pertaining to pets and pet care. We aim to be the largest pet care company in the next 3 years. In the upcoming 12 to 13 months, we plan to open 15 to 16 more stores, while digital will continue to grow and bring Cosmo presence across the country.
Q. A failure that taught you the most...
Failures are part of the process and I believe it is an integral part to grow and learn. Having experienced failure pushes you to go after your dreams. It teaches you to keep trying and trying until you get it right. This is what eventually leads to success. Like Winston Churchill once said, success is moving from failure to failure without loss of enthusiasm.
