New Delhi, India, September 9, 2002—The
International Finance Corporation (IFC)—the private sector lending arm
of the World Bank Group—will provide a US$10 million loan to Cosmo Films
Limited (Cosmo), India’s leading manufacturer of BOPP (biaxially oriented
polypropylene) films. Used for packaging and lamination applications,
BOPP films have the advantage of being non-toxic and fully recyclable.
IFC’s financing, part of the company’s $22 million investment plan, will
assist Cosmo to expand its film manufacturing capacity and help it emerge
as a company with internationally benchmarked operations, globally competitive
products, and the largest share of BOPP film exports from India. In
addition, IFC’s financing will help Cosmo consolidate its operations after
its ongoing merger with Gujarat Propack Limited.
Cosmo was established by Mr. Ashok Jaipuria in 1976. The company
has production facilities at Aurangabad in Maharashtra and at Vadodara
in Gujarat. With the ongoing expansion project, the company’s BOPP
film manufacturing capacity will increase from 36,600 to 46,600 tonnes
Mr. Jaipuria said, “We have greatly benefited from IFC’s involvement
by drawing upon the IFC team’s global expertise in manufacturing to strengthen
our own internal processes. Given Cosmo’s international growth plans,
I hope this investment will forge a long-term global partnership with IFC.”
Mr. Dimitris Tsitsiragos, IFC director for South Asia, added, “The project
is an example of IFC’s commitment towards supporting restructuring and
modernization initiatives undertaken by medium-sized companies in the Indian
manufacturing sector to achieve global competitiveness.”
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $34 billion of its own funds and arranged
$21 billion in syndications for 2,825 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY02 was $15.1 billion,
with an additional $6.5 billion held for participants in loan syndications.