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Cosmo Films Chairman's Speech > Engineering - Heavy > Chairman's Speech from Cosmo Films - BSE: 508814, NSE: COSMOFILMS

Cosmo Films

BSE: 508814|NSE: COSMOFILMS|ISIN: INE757A01017|SECTOR: Plastics
Nov 11, 16:00
6.65 (2.94%)
VOLUME 1,287
Nov 11, 15:56
5.5 (2.41%)
VOLUME 19,380
Mar 17
Chairman's Speech (Cosmo Films) Year : Mar '18

Dear Shareholder

The Indian Economy is marked by a number of key structural initiatives to build strength across key macroeconomic parameters for sustainable future growth. Financial Year 2017-18 was a momentous one as the Indian economy embraced the biggest economic reform of GST followed by year of demonetisation. This move towards ''One nation, One market, One tax’will provide a substantial boost for all organised and unorganised sectors of Indian economy. Today, India is one of the largest growing economies in the world, poised to record a healthy growth rate.

The packaging industry is experiencing rapid growth globally as a result of greater innovation and customer preferences for global brands. Packaging sales in the emerging markets are expected to continue to show strong momentum as both increased consumption and demand for consumer goods drives the need for more sophisticated packaging.

The Indian packaging industry currently constitutes about 4% of the global packaging industry which is expected to grow to bn byCY2020 as per the Indian Institute of Packaging (IIP). There are substantial growth opportunities available for packaging industry in India as per IIP report.

During the financial year 2017-18, Company''s net revenue increased by 22% to Rs. 1,936 crores from Rs.1,587 crores with 22% growth in exports. Sales volume grew by 25% with 20% growth in Speciality Films. BOPP Commodity Films margins remained subdued due to temporary demand supply gap negating the favourable impact of volume increase and speciality films sales increase. Consequently, consolidated EBITDA for the financial year 2017-18 is Rs.168 crores against Rs.169 crores in financial year 2016-17. The Company has acquired 34 acres of industrial land adjacent to company''s plant located at Waluj, Aurangabad, Maharashtra. The acquisition will make a strategic fit for company''s future expansion in Maharashtra. The Company would continue to focus on growing high margin value added films portfolio on the one hand and to become one of the lowest cost producers in other selecting product categories.

Packaging industry seems to be gravitating towards the flexible packaging owing to its multi-fold energy and environment benefits. In today''s age, where environmental awareness is widespread, unsustainable packaging can be destructive not just to the environment but to a company''s sustainability reputation as well. At Cosmo Films, we understand that even a small positive eco-impact is important and we offer superior, eco-friendly and recyclable alternatives to our customers.

Technological advancements are happening in leaps and bounds in the packaging industry and with new technologies coming into effect, the efficiency of the industry has also increased. Cosmo is also taking advantage of these technological advancements and is way ahead in adopting them to increase productivity. Cosmo has successfully completed SAP Database Migration from Oracle to HANA. HANA is one of the fastest database available in the world today and Cosmo is the first Company in flexible packaging industry to upgrade on HANA.

Cosmo is constantly reinventing its offerings to stay ahead of the curve and offer well researched products to its customers. This guides Company''s investments into Research & Development and facilitates creation of new and innovative products to fulfil the unmet needs of customers worldwide. Consequently, Company has a rich pipeline of new products under active development.

As the Company strive for growth and business excellence, we also continue to focus on environment and corporate social responsibility initiatives. Cosmo Foundation envisions to empower rural communities and assisting children and youth from underprivileged communities to enable them to realize their potential. Thus our foot prints are in 20 villages with partnership of 30 rural Government schools and 7500 students representing from 73 villages across Gujarat and Maharashtra. Apart from educational programs, we focused on imparting training on banking system and digital payments, construction of sanitation blocks for girls in 8 schools comprised of 32 toilets, installing waste bins across national highways and government schools and organising awareness programs on GST, Right to EducationAct, Child Protection Act, Impact of Child Labouretc.

I look forward to achieve several milestones on the path of excellence and profitable growth in coming years and would like to thank our stakeholders for reposing their confidence and faith in the Company.

Ashok Jaipuria

Chairman and Managing Director

Source : Dion Global Solutions Limited
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