The biaxially-oriented polypropylene (BOPP) and biaxially-oriented polyethene terephthalate (BOPET) companies are bullish. This is due to the demand-supply trajectory. The market sentiment is, "Demand is growing well, and therefore the margins are also looking healthy, both for BOPP and BOPET." According to some of the numbers that market pundits shared with us on the sidelines of the ElitePlus summit (30 September to 1 October 2024), the gross spreads for BOPP (45%) and BOPET (90%) in the first quarter of FY 2025. There has already been a 24% increase in gross BOPET spreads over the past three weeks.

Other than the demand-supply scenario, BOPP capacities are expected to be boosted in the next 24 months. As reported by WhatPackaging?, Jindal Poly Films is planning to build a plant for BOPP films in Nashik, Maharashtra. The plant, with a planned capacity of 60,000 tonnes per year, is scheduled to commence operations in the second half of 2025; the investment will amount to around Rs 2.5-billion. Jindal has capacities of 294,000 tonnes per year of BOPP, 170,000 tonnes per year of BOPET, and 33,000 tonnes per year of PP cast film (CPP).  

Meanwhile, the numbers are backed by growth in the Indian packaging films business which achieved revenue of Rs 923-crore. Jindal Poly Films, for example, showed a robust revenue growth of 41% in the first quarter of FY 25 over the corresponding quarter in the previous year.

Consider Cosmo First (earlier Cosmo Films), which closed a revenue of Rs 690 crore in the first quarter. As per Group CEO Pankaj Poddar's presentation at the ElitePlus summit, it should notch Rs 3000-crore in revenue for the financial year 2024-25.  The company's cast polypropylene (CPP) line has been commissioned but it will take time to fill this capacity. Pankaj Poddar said, "The group should be 75% on BOPP and 25% on BOPET." However, he added, the decision to shift the Korea plant has accrued to "a million-dollar saving because we have shifted the production."

Other than Cosmo First and Jindal Poly Films, players like the PolyPlex Corporation and Nahar Polyfilms are doing well.

PolyPlex saw revenue growth from Rs 4,487-crore in 2020 to Rs 7,652-crore in 2023. But in 2024, the revenue has declined to Rs 6,307-crore. For 2025, the group is setting up a plant for manufacturing PET film line and OLC in the USA as well as an expansion of its blown film line in Thailand. Even in India, Polyplex is seeking to expand its India operations in the OLC and TMP segments.