Max Speciality Films to infuse capital in new CPP line; share zooms 4 per cent
Max Speciality Films Limited (MSFL), a subsidiary of Max Ventures & Industries Limited announced that it will invest up to Rs 50 crore in a new cast polypropylene (CPP) line, having a capacity of 7.2 kilo tonnes per annum (KTPA).
This investment in new CPP line will be funded entirely via internal accruals. Work on this capital expenditure will commence in the second quarter of FY22 and is expected to be commercialised by the second quarter of FY23. The market for CPP films is witnessing growth, backed by robust and increasing demand as well as expanding capacity. This will enable MSFL to fulfill demands of the growing market proactively. Coupled with robust demand for these films, there is also a sustainability factor of MSFL coming in the picture as these films are easier to recycle.
This pandemic has led to increasing preference by customers for packaged products as hygiene & safety has become a crucial part. This has resulted in QoQ improvement for the company since the onset of FY21 with the growing demand. Previously, MSFL has announced commercialisation of two planned metallizer lines, which augment the speciality product capabilities of MSFL. This past commercialisation of enhancing speciality product capabilities bundled with the current expansion of new CPP line qualifies the company to be well-positioned to tap new growth opportunities as well as improve its profitability through better product mix.
Max Speciality Films Limited (MSFL) is a joint venture partnership with Toppan Printing Co. Ltd (Japan). A subsidiary of Max Ventures & Industries Limited, MSFL manufactures biaxial oriented polypropylene (BOPP) films of differentiated quality.
At 1.07 pm on Monday, the share of Max Ventures was trading at Rs 62.35, which is 4.18 per cent up on BSE.