Ester Industries Ltd. is setting up a state of the art 48,000 MTPA BOPET Film plant and 8,333 MTPA Metallized BOPET Film plant in Telangana through wholly owned subsidiaries.

BOPET film used in flexible packaging applications will continue to be the key end use sector, accounting for nearly 60% of global consumption, and drive demand over the next five years. It is estimated that globally approximately 1.1 million tons of capacity is likely to be added by FY2023-24.

Globally, the packaging film business has a growth of 6-6.5% whereas in India it is showing a strong double digit growth rate of 11%-13% per annum over past 5 years.

The company is planning to invest a Capex of Rs. 622 crore Capex of which Rs. 410 crore through debt and Rs. 212 crore through internal accruals.

Talking about Telangana Project, Arvind Singhania, Chairman, Ester Industries said, “Implementation of Telangana project is progressing as per schedule and should result in scaling up our revenues and profitability post commencement of commercial production in October 2022."

With respect to debt - Rs. 239 crore Euro denominated term loan at less than 2% all in cost along with Rs. 171 crore rupee term loan at interest rate is around 8% - 8.5%. The weighted average cost of debt is around 5.5% to 6%.  

The commercial operations/production is planned to commence in October 2022.

The company has three manufacturing plants - Khatima and Sitarganj in Uttarakhand and Telangana. The company has a global presence, supplying to a large customer base in 75 countries across Europe, Americas, Africa, the Indian sub-continent, Far East, Asia Pacific and the Middle East.