Prices of BOPET film in India are expected to continue rising through FY11 amid increased demand and tight supply. With alternate use of BOPET film in other industry, domestic demand is expected to grow ~25%p. a. over FY13. The management indicates that Asia region is expected to account for ~60% of worldwide BOPET film sales over the next year.

BOPP Film

Biaxially oriented polypropylene (BOPP Film) is more known for moisture retaining properties. This makes it suitable for food packaging industry and is widely used in food products like snack foods, biscuits, pasta, dried foods and meat etc., apart from its application in wrapping cigarette cartons, ready-made garment bags, adhesive tapes and print lamination. Unlike the rest of the world, the market for BOPP Film in India is underdeveloped due to substitute product availability at lower prices in the form of Tubular Quenched Polypropylene Film (TQPP). However, of late, BOPP finds wider acceptance over TQPP on account of growing preference for premium and sophisticated packaging. JPFL produces thin films, matte films, over wrap films, heat sealable films, metalizable / metalized films, label films, opaque white and P.S. tape / garment bag film etc. JPFL is the largest producer of BOPP films in India.

BOPP Industry and Price outlook

Globally BOPP industry is dominated by China with ~40% share in both global capacity and consumption and is growing @~8% p.a. Of late, Chinese cost is rising as compared to previous years mainly due to reduction in subsidies. In India, market for BOPP Film is growing owing to higher prevalence of modern format retailing and higher preference for hygienically packed, convenient forms of food articles amongst end users. Compared to annual growth of ~6% globally, demand for BOPP films in India over the next few years is pegged at 20%. BOPP film prices have remained inelastic in the past eight to nine months, with the benchmark 18 micron BOPP film, costing ~INR
114/kg due to ample supply. Prices are expected to remain firm.

Metallised Films

While metallized BOPET Films are used for flexible packaging, metallic yarn, sequins for textiles, decoratives etc., metallized BOPP films find usage in flexible packaging, gift wraps and decoaratives items. JPFL aims to scale up its capacity from 53,600 tonnes per annum (tpa) currently to 125000 tpa by FY13 in phased manner.

Coated Films

Polyvinylidene chloride (PVDC) coated BOPP and BOPET films are used in the flexible packaging industry. JPFL is the only company in India to offer this product. The Company has a capacity of 4,500 tpa to manufacture PVDC, Acrylic and LTS coated films. During FY11, JPFL has a plan to start silicon coating also.

Polyester Chips

JPFL has gained in-house ability to manufacture polyester BOPET chips as per the product requirement for its BOPET Film business. The Company has installed capacity of 111,600 tpa at Nashik, Maharashtra to produce BOPET chips which would be enhanced to 176,400 tpa in FY11.