NEW DELHI, Aug 23: Packaging products maker Cosmo Films is planning to enter into the pet care business to tap the emerging opportunity, according to a top company official.
The Delhi-based company is sensing a good opportunity in the pet care business, which is growing at a compound annual growth rate of 22 per cent.
It is expecting a higher growth in the business led by factors like rise in income, growth in number of small families and limited social lives in the post COVID-19 era.
The company is going to start a pilot project in Delhi-NCR and has plans to extend it to other cities at a larger scale, once it becomes successful.
“The company would invest around Rs 15 crore in the pilot project in the initial stage. We are quite confident and hopeful, given the kind of research and other works, which we have done, it will be successful. After that, we would launch in other cities,” Cosmo Films CEO Pankaj Poddar told PTI.
The business scenario is highly fragmented and there are no organised players in India offering end-to-end comprehensive solution to customers.
“Cosmo expects to fill up this void. Pet care is a low capex business while brand building will require some investments in the initial years. The company believes the business will deliver high returns, high valuation and add significant value to shareholders,” it had said in an investors’ presentation.
According to Poddar, the company is aiming to build a complete ecosystem for the pet care segment in phases, which includes services rainging from pet buying, pet care, recreation of pets, veterinary/medical assistance to home services.
Though Poddar did not share his plans for the business, he said:”This is about meeting the unmet demands of the consumers.”
Initially, the company would focus on creating an ecosystem for its pet care business where it would focus more on the services. Later, it may extend on the product side as per the requirement, Poddar added.
After Delhi-NCR, Cosmo may extend services to other cities.
“We will start with Delhi-NCR and then we will go to other cities once it is successful as pet penetration is higher in larger cities,” Poddar added.
Cosmo Films had a revenue of Rs 2,032.12 crore in 2019-20.
Last week, the company reported an increase of 69.15 per cent in June quarter consolidated net profit at Rs 46.99 crore. Its revenue from operations was down 11.04 per cent to Rs 481.29 crore during the quarter.
Cosmo Films is a leading solution provider in the packaging, lamination, labelling and synthetic paper segments. (PTI)
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