During our recent interaction with Pankaj Poddar, CEO of Cosmo Films, we took a look at how Cosmo Films saw the pandemic as an opportunity to take its business completely digital coupled with new investments and product launches. Here is an excerpt from the interview.
Manash Das: What is the impact of the pandemic on the flexible packaging industry? How have you coped with it?
Pankaj Poddar: Packaging, being part of essential services, has been less affected during the pandemic. The demand in specific segments has ramped up due to the increased hygiene concerns. The sale of packaged food items (food and non-food, especially soaps) has increased, and so has the demand for packaging films. In our case, increased demand for sanitizers and liquid soaps has surged the demand for our label films.
The packaging industry shall be in a better position to navigate this crisis, though it is also facing several challenges of costs going up, demand impacted from a few sectors like textile labor issues, and other operational challenges.
At Cosmo Films, we have seen this as an opportunity to take our business completely digital. Customers can now use our online ordering system to directly order the required categories and quantity without getting on a call with the salesperson.
We have acquired artificial intelligence competence and are working towards complete automation. We have launched WhatsApp chatbot to help customers search for information about Cosmo and started marketing campaigns over it. We are moving towards the newest version of SAP HANA, an in-memory, column-oriented, relational database management system for our customers. Cosmo is rapidly progressing to take the business to a digital epitome.
Manash Das: What actions would you suggest for packaging companies to consider, and what does the next year look like?
Pankaj Poddar: It is an ideal time to focus more on digital than on-ground activities. While events and exhibitions were a great way to network, build connections, and ultimately increase supply – digital events, webinars, and virtual exhibitions are fast replacing this concept since they are safe and provide an environment for people to make connections.
In terms of production, we have seen a sharp rise in our specialty packaging and labeling films due to the increased awareness of hygiene, and people wanting their food to be safe and fresh from inside the package.
As a company, Cosmo Films is already supplying innovative packaging solutions which can provide a long shelf life to the product packed, including retaining its aroma & flavor. In the coming future, we are estimating that the demand for barrier and heat resistant BOPP (bi-axially oriented polypropylene) films will increase as it provides higher shelf life, promote recyclability and reduce costs.
Manash Das: How relevant is the current time for the Indian flexible packaging for new investment or capacity building?
Pankaj Poddar: The industry is dominated by strong players operating for the last several years and has multiple lines to provide innovative and differentiated solutions to the customers. In recent years, we have seen that new players are trying to enter the market, which is highly challenging to them. It is critical that demand and supply keep pace with each other as any imbalance in either of them creates significant challenges.
The landscape is changing fast, and we need to keep ahead of the curve. Research and Development plays and will continue to play a significant role in helping us stay ahead by engineering innovative product solutions that benefit our customers and the environment.
With the current scenarios, it is also vital to invest on the digital front since things are mostly going remote. We have made significant investments to improve our digital infrastructure by acquiring artificial intelligence competence for customer mapping and lead generation and taking the business completely digital with our new online ordering system for the customers.
Manash Das: What are the significant investments and new product launches by Cosmo Films recently?
Pankaj Poddar: We have developed a host of new products in the past year, some of which are:
- Anti-bacterial, anti-viral and anti-Covid film which kills viruses, covid and bacteria from the surface.
- A fragrance lamination film that releases a sweet fragrance when rubbed upon.
- A new ‘TeploR’ heat resistant film which is a replacement of PET-based films in heat sealing applications to facilitate recyclability.
- Our range of Cosmo Synthetic Paper is fast replacing conventional pulp-based paper in applications that require durability like certificates, mark sheets, ration cards, visiting cards, and more.
We have set up a new subsidiary- Cosmo Speciality Chemicals, which was established with a vision of acquiring the textile auxiliary market in India & abroad by providing the best and the most competitive products through innovations based on sustainable science. As part of backward integration, the company has also entered into the masterbatches segment.
We have already announced the re-commissioning of our BOPET line by the next year. Speciality BOPET is a niche segment that caters to multiple application segments, with opportunities for import substitution and worldwide exports. The new specialty BOPET line shall be unique, and a majority of the products made on the line would focus on sustainability and the creation of a greener future as the key theme.
Manash Das: Do you think the need for the packaging industry value chain to create more sustainable solutions will continue to grow?
Pankaj Poddar: Definitely. There is an increased outcry for sustainability across the world, and brands & film manufacturers are all looking for ways to create more sustainable forms of packaging for a brighter future.
Cosmo Films has come out with several solutions to help ease plastic recyclability. We are a focused polypropylene player and our films are made from BOPP and CPP. The two types of films could be used individually for single-layer/duplex structures or in combination to form mono-material laminates without compromising the pack’s aesthetics and performance. BOPP and CPP films also offer the benefit of better yield and, in turn, less consumption of plastics and overall lesser laminate cost. Cosmo Films is working very closely with several FMCG brands to understand their needs, the needs of the consumer and is then helping them to develop easy to recycle packaging laminates for their products without compromising on the different functionalities that a particular packaging is supposed to provide.
Apart from these, the company has also introduced a unique synthetic paper, which can be used to replace wood pulp-based paper in applications like certificates, mark sheets, menu cards, tags, and more, thus helping reduce the cutting down of trees.