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Deeptha Rajkumar

SHARES of Cosmo Films Ltd, manufacturers of BoPP film used in packaging, has been witnessing sustained market support on the bourses in the recent past. The stock, which was quoting at around Rs 90.60 on the bourses on June 25 ended the day at Rs 114 levels today, up more than 20 per cent.

According to the market circles, rumours that the supply overhang over the bonus issue shares is close to being resolved has been spurring interest in the counter.

Talk of the company looking to tap new markets for exports added to the market interest.

When contacted, Mr S.K. Mittal. CEO, Cosmo Films, confirmed to Business Line that given the company's firm base in western markets, it is looking to tap newer markets for exports.

``With our capacity expansion, we are looking to diversify our markets so as to broadbase our customer base which in turn could help us push volumes. We have already identified potential markets in Russia, West Asia and South Africa,'' he added.

According to Mr Mittal, exports have been growing at the rate of 40-50 per cent per annum for the past five years. "However, this year in our first quarter alone, our exports have seen a 150 per cent jump in comparison to the corresponding period last year,'' he said.

For the first quarter of the current fiscal, the company has registered a turnover of Rs 86.7 crore of which Rs 32 crore have been exports. In the domestic market, the company has been witnessing a 12-15 per cent growth over the last two-three years.

On the supply overhang of bonus issues, Mr Mittal said the company's bonus shares - issued in March this year -

were yet to be listed on the bourses. "On our part we have fulfilled every criteria required by the stock exchanges (SEs). And in the future will continue to co-operate with them to fulfil all the modalities. But we are yet to receive the formal notification from the SEs of the listing. We are hopeful this will be resolved soon,'' he said.

Currently, there are several small and medium players in the BoPP film market, including Max India's division with a capacity of 9000 tpa, Supreme Industries, Simco-Birla Groups, XPro and Flex Industries.

Cosmo claims about 40 per cent of the domestic market, 75 per cent of all BoPP exports and the largest installed capacity among domestic players.

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