Read this exclusive interview with Pankaj Poddar, Group CEO, Cosmo and Zigly.
Cosmo and Zigly Group CEO Pankaj Poddar recently spoke with BW Applause and Everything talks about reinventing the four-decade-old brand and more.
With a legacy of 40 years now, Cosmo is ready to reinvent itself, what is the reason for the company’s name change from Cosmo Films to Cosmo First?
Cosmo’s journey began 40 years ago with Cosmo Films. Today, we have expanded into multiple business areas beyond films such as masterbatches, textile chemicals, adhesives, window films and pet care. We have always valued our stakeholders above all else and want to continue to be first for all of our stakeholders, both internal and external.
Throughout our journey, we have prided ourselves on our ability to provide industry leading niche solutions in packaging, lamination, industrial and labeling applications. Today, we have achieved inspiring diversifications in specialty chemicals, consumer care and D2C retail, with the aim of being a pioneer in these previously fragmented industries.
We have always been the first and therefore it is only fitting that we have a name that represents this new Cosmo. A name that captures the heartbeat of who we are and a name we can all be truly proud of.
The company’s last quarter results were positive; Can you shed some light on the performance and outlook for the coming quarters across all companies?
Cosmo Films has experienced remarkable growth in just a few years. Our quarterly results for March 2022 were recently released and the company’s net sales increased 22% year on year, supported by increased specialty sales, better operating margins and increased subsidiary performance. . Our EBITDA increased by 31%.
For FY23, we remain optimistic about future demand and market conditions and hope to see sustainable growth in FY23, supported by continued R&D and customer satisfaction.
Cosmo Films recently announced the CPP movie expansion; please share your expansion plans and technological advancements online?
We have recently expanded into Cast Polypropylene (CPP) films with a new production line in Aurangabad with an annual rated capacity of 25,000 MT. Cosmo Films also announced the commissioning of the world’s largest BOPP film production line in Aurangabad, India, with an annual rated capacity of 67,000 metric tons. A new line of BOPET films will also be put into use by Q2 2022, which will greatly help the company to accelerate production and sales.
Cosmo Films is also entering the consumer segment with the manufacture of Windows lamination films for heat control and reduction. Rising temperatures across the country can lead to environmental sustainability, reduced carbon footprint and lower electricity consumption.
As part of our subsidiary – Cosmo Specialty Chemicals, we have launched almost 60 products for the textile industry, which are fully environmentally friendly and GOTS certified. Under the same subsidiary, the company also plans to expand into industrial adhesives by the next quarter. This will help us provide a holistic 360 degree solution with films and adhesives. Cosmo will offer adhesives for paper-to-film, film-to-film and film-to-bottle lamination.
With Zigly, we have already opened 3 stores at different locations in Delhi. We would launch more experience centers for our consumers all over India. Our plan is to open 150 stores in 5 years.
Around the world, special attention is paid to the recyclability and sustainability of packaging films. In the same vein, what are the initiatives taken by Cosmo Films?
Cosmo Films has two sustainability priorities – efficiency and the three Rs – Recycle, Reduce, Reuse. We design packaging that lasts longer, has single-layer materials, and retains its recyclable capabilities. CPP and BOPP films are made from a single layer material, which makes them highly recyclable and durable. These films also offer a higher yield and, in turn, result in less plastic consumption.
Beyond packaging, Cosmo Films is working on a sustainability plan to reduce waste by improving waste collection and the re-granulation process to increase the production of usable reused pellets. A large part of Cosmo’s investments are devoted to sustainable development and we are dedicated to the goal of the circular economy.
On the manufacturing side, Cosmo Films is increasingly dependent on renewable energy as a source of energy. All of Cosmo’s manufacturing plants are integrated with solar power, which contributes significantly to total energy consumption. In terms of yield, manufacturing waste is recycled for the production of films and for the creation of packaging materials. The company makes conscious efforts to reduce water consumption and practices rainwater harvesting and reuse of treated effluent water. We have also worked to reduce noise pollution and have planted over 15,000 trees in the surrounding area.
How would you rate the growth of Cosmo Ferrites’ business in the electronics industry? Also share the opportunities you see for Ferrites business in India and overseas?
The company is doing well in terms of turnover. Our March 2022 quarterly results were released recently. The company’s net revenue increased by 75% and our EBITDA increased by 272% to 9.38 crore. Going forward, the company’s expansion plans to increase soft ferrite manufacturing capacity from 2400 MT per year to 3600 MT per year will be operational from the second quarter of FY23. Our goal is to capture at least 5% of the global market in the next few years, which is currently less than 1%.
Cosmo Ferrites manufactures flexible ferrites which have multiple applications in the industries of power electronics, telecommunications, electric vehicles, solar energy, household appliances, automotive, medical, path iron, etc. With the government’s efforts to make India a major electronic hub, we expect quite a large demand for ferrites in the coming years. Programs like PLI, SPECS and others have already attracted millions of investments in the country in the field of electronics. Ferrite is one of the booming industries in the country and electronics manufacturing presents a huge opportunity for its growth.
Zigly is a unique company given Cosmo’s business profile. What prompted Cosmo to enter the pet care segment?
Pets, which were a social media phenomenon some time ago, have slowly become part of our family. There’s a lot of expectation and enthusiasm for pets – and people are adopting pets at an unprecedented rate. India is the fastest growing pet care market with around 20 million pet dogs and around 19 million other pets. We are also seeing a social awareness towards the protection of animals and their rights. Cosmo believes this is a great market opportunity and wants to tap into it through its D2C platform and offline experience centers. At Zigly, we aim to provide a one stop solution for all things pet related and pet care.