The new CPP line expansion will be funded entirely through internal accruals. Work on the capex will commence in Q2FY22 and is expected to be commercialised in Q2FY23.
The demand for the CPP Films has been robust and expanding the capacity will enable MSFL to cater to the growing market for such films. Apart from robust demand these films enjoy, they will also further enhance the sustainability factor of MSFL as these films are easier to recycle.
Ramneek Jain, CEO, Max Speciality Films, said, “The biggest advantage of CPP is its recyclability and eco-friendliness. We believe that CPP has an evolving role to play in the mono polymer solutions. The investment will help us to increase our offering to FMCG brands to meet their global commitments. Going forward, we plan to offer niche products within CPP by developing specialty films like high barrier metallised film and film for retort application among others."
From the onset of FY21, MSFL has witnessed robust demand for its packaging films which have continued to improve quarter on quarter leading to strong revenue and profitability growth. This demand is led by increasing preference of customers for packaged products as hygiene and safety has taken over priority during this pandemic.
Prior to this capex, MSFL had announced the commercialisation of first of its two planned metalliser lines which enhances the speciality product capabilities of the company.
With the expansion of this new CPP line, combined with the increasing speciality product capabilities, MSFL is well placed to capture the new growth opportunities enhancing the scale of the business and at the same time sustainably improve its profitability through better product mix.