Cosmo First bets on speciality, capacity expansion and global growth

Kulbhushan Malik, business head of Cosmo First, explained that Cosmo now operates ten BOPP lines, three CPP lines and one polyester line, giving it an overall capacity of more than 3,00,000-tonnes. “We started our tenth BOPP line in Waluj, Aurangabad — the world’s fastest and largest line, running at 700-metres per minute with a capacity of over 80,000-tonnes per year,” he said. This line alone adds close to 40% to Cosmo’s existing capacity.

On being asked about diversification, Malik said films remain the core business, but Cosmo is also investing in rigid plastics, thermoformed containers, barrier sheets and trays. In addition, Cosmo Speciality Chemicals and its ventures into window films for architecture and automotive applications have opened new growth avenues.  

A recent innovation, Cosmo Green Graphic, offers a PVC-free solution for large-scale graphics used in malls, metros and airports. These PVC-free, phthalate-free, halogen-free, sustainable, and recyclable, are specifically designed for indoor and short-term outdoor promotional graphic applications. He explained that they also have water-based acrylic adhesives while reducing environmental impact.

Exports continue to be a strong play. Malik noted that Cosmo has historically exported around 50% of its capacity, and exports will continue to grow.” The company’s speciality portfolio, including lidding films and premium fresh food applications, is expected to drive higher value realisations.

On capacity cycles and market dynamics, Malik admitted that overcapacity may emerge by 2027–28 as new lines are commissioned across India. However, he was confident about sustaining 8–10% annual market growth, both in India and exports. “Our focus is clear — keep expanding speciality sales and value-added products, which ensures year-on-year revenue growth,” he said.

Discussing Cosmo’s US business, Malik clarified that it is primarily a distribution-led operation. A new wide-web slitter was recently added to improve just-in-time supply for American customers. “The US remains a critical market, though tariffs on Indian exports pose challenges. Still, we are committed to scaling up capabilities there,” he said. He hoped and expressed optimism stating the tariffs might not remain at 50% for long. 

On labels, Malik said Cosmo has built a wide portfolio across pressure-sensitive, shrink sleeves, wraparound and in-mould labels, serving most global majors. Innovations will be revealed at the upcoming Labelexpo in Barcelona. He added that investments in R&D are ongoing, citing India’s first lab stretcher for biaxially oriented film development and a new microbiology lab in Waluj that enables shelf-life testing for brand partners.

When asked about customer concerns, Malik pointed to recyclability as the main priority. He emphasised the need for monomaterial laminate structures, greater standardisation and consumer education, particularly with India’s new EPR guidelines.

Finally, on GST reforms, Malik said the government’s decision to adjust tax rates, such as higher rates on carbonated beverages, appeared designed to separate healthy from unhealthy categories. “Overall, it gives a push across sectors — FMCG, rural, construction and services. In the medium term, this should improve disposable incomes, create positive sentiment and support economic growth,” he concluded.