Cosmo IV

completed

Cosmo, an existing IFC client, is one of the largest producers and exporters of bi-axially oriented polypropylene (BOPP) films in India and is the largest producer and exporter of thermal films in the world. The Company manufactures commodity BOPP films for print lamination and packaging and special value added products like high barrier film, synthetic film, high yield white opaque film, extrusion coated film, etc. The Company has production facilities in Waluj near Aurangabad (Maharashtra) and Karjan, near Vadodara (Gujarat) with a total installed capacity of 122,200 metric tons per annum (MTPA) of BOPP and thermal films. IFC initially appraised Cosmo in June 2011 and at this stage the Company had proposed expansion of its manufacturing facility in Vadodara by installing a 40,000 tons per annum line, as well as the setting up of a facility overseas. The Environmental and Social Review Summary (ESRS) for this project was disclosed on 22nd August 2011.However, those plans were subsequently changed to install the new line (of 40,000 tons per annum) at a new location in Shendra SEZ in Aurangabad (the “Project”). Thus the ESRS has been updated to reflect the amendments. The nature of IFC’s investment remains the same (project debt).The main operations at the Company’s new facility will be similar to Cosmo’s existing facilities including extrusion of poly propylene films, thermal lamination, coating, cutting and packing. Major construction activity for the facility is already over (except external facilities like roads) and installation of machinery and equipment is in progress.