Cosmo Films

Cosmo Films Ltd.

Cosmo Films Global Footprint
Type	Public
Traded as	BSE: 508814 NSE: COSMOFILMS
Industry	Manufacturing, plastics
Founded	1976 (1976)
Founder	Ashok Jaipuria [1]
Headquarters	Delhi, India
Area served	Worldwide
Key people	Ashok Jaipuria (Chairman & managing director) Pankaj Poddar (Chief Executive Officer)
Website	http://www.cosmofilms.com

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.^[2]

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.^[2][3]

The company is listed on the Bombay Stock Exchange (BSE)^[4] and National Stock Exchange (NSE),^[5] India. As on 21 March 2016, its market capitalisation (BSE) was ₹ 714.81 crores (USD 106.25 million).

Origin

Ashok Jaipuria, pioneer of BOPP manufacturing in India, is the son of late Sitaram Jaipuria, founder of Swadeshi Polytex.^[6] He founded Cosmo Films Limited in October 1976 and set up the first production plant at Aurangabad, Maharashtra in the year 1981.^[7]

Products

Packaging films

Cosmo Films' packaging films are manufactured in the following broad categories - printing & pouching films, barrier films and overwrap films.

• Printing & pouching films: These include low COF & stable COF films, CPP (cast polypropylene) films, thin metalized films, cold seal films, low SIT films and anti-fog films. They are used in the packaging of confectionery, bakery products etc. COF films can be used on horizontal form fill seal (HFFS) and vertical form fill seal (VFFS) packaging machines. Cosmo's first CPP line at Waluj in Aurangabad has an annual capacity of 1800 MT. This particular product is available in 3 transparent, 3 metalized and 2 speciality varieties.^[8]
• Barrier films: These include transparent and metalized varieties. Transparent films are categorised into aroma barrier films for packaging of coffee/tea and spices, high oxygen barrier films for biscuits packaging and high oxygen & aroma barrier films for ready-to-eat food products. Metallised films are categorised into high moisture barrier films for sandwich lamination in shampoo sachets, dry milk powder & powdered drink sachets/packs, high moisture barrier with high seal strength films for bulk packs that require moisture barrier and ultra high barrier films for foods with fatty content such as dry fruits, chips etc.^[9]
• Overwrap films find application in general overwraps, cigarette overwraps and cable overwraps. They are available in two varieties - transparent and white.

Label films

Label films are broadly divided into the categories - label face stock films, wrap around label films, in-mould label films (IML) and direct thermal printable films (DTP).

• Label face stock films are used globally by well known brands and are universal print receptive - their coated surfaces show excellent adhesion with a large variety of inks and across diverse printing processes like UV, offset, letterpress etc.^[10]
• Wrap around label films are offered in clear, opaque white and metalized varieties. These films are suitable for cut & stack as well as reel feed method according to their thicknesses.^[10]
• In mould label films or IML films have a low static charge with good dust resistance, good stacking for robotic arm pick up and good machinability. The product density ranges from 0.55kg/cubic metre to 0.70kg/cubic metre. Low density variety is used for small containers whereas the higher density film for medium to large containers. These films are durable, cost-efficient and suitable for refrigerated food. They have good photographic quality, affinity to solvent based inks and can be used for half tone printing. They are offered both in plain and orange peel effects and are suitable for sheet cutting.^[10][11]
• Direct thermal printable films or DTP films are used for price labelling in retail, industrial shipping, logistics, and automatic labelling in food industry. They offer good scratch resistance and matte finish with waterproofing and darker print images. They are available in 50, 75, 84 & 100 microns.^[10][12]

Lamination films

Lamination films are manufactured in the following categories - standard lamination films, special application films, and premium lamination films.^[13]

Special application films

• Insulation films are metalized films that offer thermal insulation and are used in construction of buildings. They are laminated with EPS (Expanded Polystyrene).
• Mapped & Matched film rolls come mapped to each other for twin-sided lamination and provide good clarity and durability to postcards, ID cards etc.

Premium lamination films: These films have been designed keeping the needs of luxury packaging and high end graphic lamination industries in mind.

• Velvet lamination films lend a rich texture and finish to the printed surface.
• Scuff free matte lamination films are scratch resistant and provide protection to the printed surface during production, transportation and handling.
• Digital lamination films bond well with digitally printed surfaces and provide good optics and protection.

Operations

Cosmo Films has 5 production facilities-cum-distribution centres located across India, Korea, and USA.^[14][15]

Capacity

The company's annual production capacity is 140,000 MT for BOPP films; 40,000 MT for thermal lamination films; 10,000 MT for coated films and 15,000 MT for metalized films.^[14]

Expansion Drives

In January 2015, Cosmo Films officially announced the up-gradation and expansion of its US operations with a monetary investment of $750,000. On 1 Nov 2015, they made an announcement to invest Rs. 220 crores to expand their capacity at Gujarat and Maharashtra facilities. Under this, they have added a CPP line to their Maharashtra facility with an investment of Rs. 20 crores. A new BOPP line with 60,000 tonnes per annum (tpa) capacity will be added to their Vadodara facility in Gujarat amounting to an estimated investment of Rs. 200 crores by early 2017.^[16]

Leadership

Ashok Jaipuria

Ashok Jaipuria, chairman & managing director, Cosmo Films, laid the foundation of the company in 1976. He has 40+ years of experience in the corporate world and is a member of the board of governors of IIT, Indore and an independent director on the board of Hindustan Sanitaryware. In the past, he has also been an executive committee member of FICCI.^[17]

Pankaj Poddar

Mr. Pankaj Poddar joined Cosmo Films as a CEO in the year 2011. He has a 20+ year experience in fields like finance, advisory and assurance. In the past, he has worked in the automotive and FMCG industries as well.^[15]

Acquisitions

• In 2001, Cosmo Films declared its acquisition of a 76.51 % stake in Gujarat Propack Limited (GPL) at Rs. 29.51 per share. The deal translated into an enterprise valuation of around Rs. 87 crore, GPL had more than 27% market share in the industry and it merged with Cosmo Films in a 2:1 ratio of the equity shares held.^[18]
• In 2009, Cosmo Films acquired US-based GBC Commercial Print Finishing for USD 17.1 million (about Rs. 82 crore). The organisation was a thermal lamination division of ACCO Brands and exported its packaging equipment to Europe, North America, Japan and other Pacific countries.^[19]

Research & development

Cosmo Films spends 0.5% of its annual sales on R&D.^[20]Led by a team of well-qualified research scientists, this vertical is recognised and certified by the Department of Scientific & Industrial Research, India and has multiple patents (6 in India, 3 in the US). Most of the high-end films have evolved from the R&D focus and Cosmo Films' effective customer partnerships.^[10]It is also credited with the development of the first thermal lamination film that could take extrusion coating without a primer.

The key focus areas of R&D team include:

• Identify technical (product/application) growth areas through customer activities, exhibitions, publications and technical interactions
• Enhance value addition in product portfolio
• Efforts to implement downgauging in production, reduce consumption of raw materials & fuel to diminish carbon footprint
• Support water based printing and completely replace solvent based coating with water based coating

The team has been honoured with several product development awards - Indiastar, IFCA Star and PFFCA Star.^[14]

Corporate social responsibility

Cosmo Foundation

Cosmo Foundation, set up in 2008, is the social welfare arm and CSR initiative of Cosmo Films. It works closely with the underprivileged communities around its manufacturing units, at Karjan block of Vadodara district and at Aurangabad city. The organisation aims to improve quality of life via education and sanitation. It has partnered up with 14 government schools and benefits almost 2500 students from 43 villages every year. These programs are focussed on imparting basic reading, writing, arithmetic skills, English communication skills, digital skills and life skills. They blend traditional methods of teaching with creative and innovative techniques and technology.^[21]

Programs

Computer Literacy Program

Cosmo Foundation imparts computer education to primary and secondary school students. The program trains students to operate Linux and Microsoft systems. It has trained local youth and engaged them as computer teachers. The program is reported to have reduced the rates of absenteeism among children and enhanced their interest in mainstream education.^[22] The best student performers are awarded laptops to motivate them to pursue higher education and enhance their IT skills.^[23]

Gyan Vihar Kendra

Gyan Vihar Kendras or educational centres have been established to help students learn the fundamentals of Gujarati and Mathematics. It helps them develop a good understanding of concepts and inculcate school readiness. Cosmo Foundation trains local women to become Balmitras or teachers for children who, in turn, impart activity based learning.^[22][24][25]

Basic English Learning Program

This program is aimed at eliminating inhibitions and developing communication skills in English among children and youth. The program also focuses on phonetics, sentence formation, basic personality development and etiquettes. During summer vacation, certificate courses for English fluency development are organised.^[21][22][25]

Swachh Vidyalay Campaign

Cosmo Foundation has tied up with 14 government primary and secondary schools in 7 villages of Vadodara to promote toilet repair, construction and cleanliness in schools under its Swachh Vidyalay (Clean School) Campaign. To this effect, swachhta or cleanliness committees are formed, badges are awarded to their members and cleanliness material (sanitation kit) is provided to the schools. The campaign encourages personal hygiene and behavioral change among students.^[26]

Cricket tournament

Cosmo Films sponsors Shahid Bhagat Singh Cricket tournament every year in order to promote team spirit among industrial workers and the youth.^[27]

Setup and maintenance of gardens

Cosmo Films has set up and maintains gardens in Aurangabad.^[27]

Awards

• National Award for Excellence in CSR & Sustainability-2015 under the category, "Education Improvement"^[21]
• Asia Pacific Enterprise Leadership Award-2013 under the category, "Commitment to Philanthropy"^[21]
• Africa CSR Leadership Award-2012 under the category, "Improvement of Education"^[21]

References