Cosmo Films Ltd, has announced an investment of Rs15 crore towards procurement of 2400 mm wide metallizer for further capacity addition in its metallizing business.

The company has already placed the order with the European firm for the metallizer on 10 May, 2008 to be delivered to them by March 10, 2009.  

Cosmo Films is one of the leading players in production of biaxially oriented polypropylene (BOPP) films. The product is used mainly by FMCG players like Parle, Britannia, Hindustan Unilever, Nestle and Dabur, which use tetrapacks and BOPP films for packing their products.

Apart from BOPP films, the company manufactures thermal films with annual production capacity of 21,000 tpa.

Cosmo currently has an aggregate capacity to manufacture up to 68,000 tpa of BOPP films, which will be enhanced to 105,000 tpa by the first quarter of ’10.

Recently, the company has firmed up its expansion plan to raise the capacity of its Vadodara plant by 37,000 tonnes per annum (tpa), which will require a capital expenditure of Rs 140 crore. The company will raise the funds through banks, preferential allotments and internal accruals.

Last month, Cosmo Films has declared 50 per cent dividend for the financial year 2007-08. The company reported a net profit of Rs 44.50 crore, up 79 per cent compared with Rs 24.82 crore in 2006-07.