NEW DELHI: Max Ventures & Industries Limited’s (MaxVIL) subsidiary Max Speciality Films Limited (MSFL), which manufactures specialty packaging films is investing Rs. 600 million to install two metallizer lines to meet the increased demand for specialty packaging from packaged food segment with improved shelf life offering 100% reliable laminate options. MaxVIL holds 51% stake in MSFL, while Japanese major Toppan holds 49% stake.
These lines add a thin layer of metal, mainly aluminum to the specialty films being produced by MSFL to enhance the barrier properties and for superior appearance of the packaging.
MSFL’s commitment of Rs. 600 million for the two metallizer lines is a part of its efforts to improve the proportion of specialty films it markets, and in line with its focus since the last few years to co-create packaging films innovations in consultation with leading FMCG companies.
Out of the total planned capex of Rs. 600 million, MSFL has invested Rs. 300 million for installing the first metallizer line, which is expected to be commercialized by March next year. The second metallizer line, with similar investment of Rs.300Mn, will be operational in the 3rd quarter of the next financial year. These metallizer lines will not increase the overall capacity because the base film remains the same, but it will enhance MSFL’s ability to improve the value-added specialty component in its product category.
Speaking about the investment, Sahil Vachani, MD & CEO, MaxVIL, said, “The installation of the new metallizer lines is a part of our stated strategy of being the quality and innovation leaders in the industry. We have been focusing on increasing the specialty films component in our production-mix which results in better pricing power and improves margins.”
MSFL manufactures a vast range of BOPP films of differentiated quality across a wide field of applications: graphic art, labelling, flexible packaging for processed foods, confectionery, non-food fast moving consumer goods (FMCG) and industrial goods. It has developed packaging films with anti-bacterial properties which has been accepted very well in the markets. Its total capacity is currently around 81 KTPA (Kilo-Tonnes Per Annum) at facility located at Rail Majra, Ropar, Punjab.
The company is focusing to increase sales of value-added specialty films as it is more profitable. Value-added specialty films volume contribution stood at 42 per cent of total volumes in FY20 as compared to 34% in FY19 and it continues to increase.
The BOPP Films Industry was severely impacted in FY19 because of significant capacity expansion, leading to depressed prices and profitability. However, from FY20 onwards, the demand has increased while supply remained constant, resulting in increased realisations and strong profitability for MSFL. No major capacity addition is planned in the BOPP industry in the near future, which augurs well for sustainable margins for the MSFL in the times to come.
