Cosmo Films, one of the leading producers of biaxially-oriented polypropylene (BOPP) films in India, is expanding the production of BOPP from 68000 MT to 105000 MT. The proposed expansion would be carried out at its Vadodara unit which has a present production capacity of 6000 MT only. The proposed expansion would require an investment of around Rs 140 crore which would primarily be funded through debt (Rs 100 crore) and internal accruals (Rs 40 crore). Company expects the expanded capacity to get commissioned by the beginning of FY-2010.

Currently, the Company is in the process of approaching banks for raising the debt. In a meeting held on 16th Dec07, the Board of Directors approved an issuance of 3.10 million Fully Convertible Warrants to the promoters of the Company at a price of Rs 107/- per warrant, thus raising Rs 33.17 crore in the process. The Company contemplates using a part of the said proceeds for the abovementioned expansion plan.

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