In our previous article, we had done a detailed SWOT analysis of a world-famous automobile manufacturer company, Maruti Suzuki. In this article, we are going to break down the SWOT analysis of Cosmo Films.
Cosmo Films Limited is a worldwide innovator in speciality films that are utilized for flexible packaging, lamination, labelling and industrial applications. Its film contributions incorporate biaxially situated polypropylene (BOPP) films, cast polypropylene (CPP) movies and are destined to be offered biaxially arranged polyethene terephthalate (BOPET) films.
Founded in 1981, the company is the largest exporter of BOPP films from India and the largest producer of thermal lamination films in the world with plant cum distribution centres in the United States, Korea & Japan and global channel partners in more than seventy countries.
Another aspect that made Cosmo Films a global leader in its marketing efforts. As the world goes online, marketing is changing and if you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Do you want to know the secret behind the fast growth of Cosmo Films worldwide? So for the answer, here we provide you with a detailed SWOT analysis of Cosmo Films. Before the detailed SWOT analysis, let us know more about the company in-depth.
About Cosmo Films,
Founded in the year 1981 by Mr Ashok Jaipuria – Cosmo Films Ltd (Cosmo Films) is a supplier of flexible packaging solutions. The organization is associated with delivering biaxially situated polypropylene (BOPP) movies and cast polypropylene (CPP) films. Today the company is the global leader in speciality films for packaging, lamination and labelling applications.
It offers a wide scope of BOPP films including direct warm printable movies, velvet warm cover movies and high boundary films for adaptable bundling, overlay, marking and modern applications.
The item arrangement of the organization incorporates print and pouching films, overwrap films, wet (print) overlay films, dry (warm) cover films, pressure touchy name stock movies, in-form films, direct warm printable movies, obstruction movies, tape and material movies, manufactured paper and fold over mark films. The organization serves food and drink businesses.
The organization has a presence in the US, India, Japan, Korea, Netherlands, Poland, Singapore and Thailand. Cosmo Films is based in New Delhi, Delhi, India.
|Founder||Mr Ashok Jaipuria|
|No. of Employees||946+|
|Market Cap||Rs 3,708.32 Crore (2022)|
|Annual Revenue||Rs 748.9 Crore (2022)|
|Net Income/ Profit||Rs 104.4 Crore (2022)|
Products By Cosmo Films
- Packaging Films
- BOPP Films
- Label Films
- Synthetic Paper
- Barrier Films
- Lamination Films
- In-Mould Label Films
- Wrap Around Label Films
- Sustainable Solutions
Competitors of Cosmo Films
These are some of the close competitors of Cosmo Films Ltd.
- Innovia films
- Taghleef industries
- Jindal films
Now that we know everything we need to know about Cosmo Films, let’s start with the SWOT analysis of Cosmo Films.
SWOT Analysis Of Cosmo Films
SWOT analysis is like a formula for identifying Strengths, Weaknesses, Opportunities, and Threats (SWOT) that a market possesses for a company. The main objective of this analysis is to help us, as investors and the company, to make business decisions wisely.
By using this method, we analyze where the company is falling short, where it is excelling, and what needs to be worked upon.
To better understand the SWOT analysis of Cosmo Films, refer to the infographic below:
So let us first start by looking at the strengths of Cosmo Films from the SWOT analysis of Cosmo Films
Strengths of Cosmo Films
The strengths of a firm can be positive qualities that help the company to maintain goodwill in the market or give it a competitive advantage. Mentioned below are some of Cosmo Films’ strengths:
- Brand Portfolio: Cosmo Films are a piece of the pie in the containers and packaging industry. Cosmo Films has manufacturing units in India & Korea with a BOPP manufacturing capacity of 200,000 TPA and a CPP manufacturing capacity of 9,000 TPA.
- Premium Clients: Cosmo products are exported to more than 80 countries worldwide. Cosmo’s client base includes the leading label face stock manufacturers and global flexible packaging like Amcor, Constantia, Huhtamaki, Avery Dennison etc., which service brands like Pepsico, Coca Cola, Unilever, P&G, Britannia, Parle, CP, Reckitt Benckiser, Nestle, Mars etc.
- Solid Memorability: Cosmo Films items have solid memorability in the containers & packaging industry. This has empowered the organization to charge a superior contrast with its rivals in the container and packaging industry.
- Extensive Network of Channel Partners: Cosmo Films has a broad vendor organization and partners network that not just assists in conveying productive administrations to the clients yet additionally help in overseeing serious difficulties in the Container and Packaging industry. an extensive network of channel partners across the world for the distribution of its range of lamination films.
- Different Revenue Models: Over the years Cosmo Films has wandered into different organizations outside the basic materials area. This has empowered the organization in all actuality to foster a differentiated income stream past the basic materials area, containers and packaging section.
- Range of Products: The company offers a comprehensive range of speciality films for flexible packaging, lamination, labelling and industrial applications, including films such as high barrier films, velvet lamination films, and synthetic paper.
- Expansion: Cosmo Films are always ahead in terms of expansion and production capacity expansion. Recently Cosmo Films invested 140 crores to set up a CPP film production line in Aurangabad.
Weaknesses of Cosmo Films
Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of Cosmo Films:
- High Cost of Technology: With the rising demand for packaging products, also comes the need of being constantly updated with technology. Businesses are adopting AI and machine learning to function on a day-to-day basis but they come at a hefty price.
- Lack of Loyalty: Since Cosmo Films is known to have a knack for innovation, suppliers are in a constant state of fear of being replaced by technology.
- Declining Revenue: Due to the Covid 19 pandemic, the packaging, lamination and labelling industry had hit a major dent as many activities were put at a halt resulting in huge losses.
- Limited Portfolio Diversification: The portfolio of Cosmo Films is not as diversified as compared to other industry leaders like Treofan and Jindal Films etc.
- Non Availability of Raw Materials: Having fewer mines under its control affects the availability of primal materials. Hence at times, there is the unavailability of the raw material which is required.
Opportunities for Cosmo Films
Opportunities are uncontrollable external events a person can potentially leverage. These are favourable external factors that could give an organization a competitive advantage.
- Neighbourhood Collaboration: Tie-up with nearby players can likewise give chances for development to Cosmo Films Ltd in global business sectors. The nearby players have neighbourhood aptitude while Cosmo Films Ltd can welcome worldwide cycles and execution mastery on the table.
- Government Support: With new policies already supporting local businesses to prosper in the country and an increase in regulations in the industry has proven to become a huge benefit for this company.
- Technological Advancements: Adoption of technological advancements can help curb additional costs which can be used to manufacture a new product line.
- Changing Preferences: With government policies supporting many startups, many businesses are in constant need of raw materials. Companies need to keep an eye on these customers as they are in their experimental stage.
Threats to Cosmo Films
Threats are the external factors that may cause loss to the firm over time or all at once. Some of these are stated below keeping Cosmo Films in mind:
- Competition: Competition from existing and foreign players is a huge threat to Cosmo Films. Some of the competitors are Treofan, Jindal Films etc. Jindal Films is its biggest competitor and is the market leader. Due to this ongoing competition, there are price cuts which lead to a decrease in profit margin.
- Government & Environmental Regulations: The government has slightly different and more strict laws for the steel industry because it is our natural core and to maintain their control over the consumption of natural resources. While on the other hand organizations concerned about the environment also have their eyes on the packaging industry due to its threat to natural resources and the environment.
- Unstable Environment: Due to the Covid 19 pandemic, packaging demand plummeted, and ever since the industry has been coping with the after-effects of the same.
- Shortage of Human Resources: As the company is focusing on becoming more technologically forward, the company might face a lack of human resources shortly.
This ends our extensive SWOT analysis of Cosmo Films. Let us conclude our learning below.
One of the biggest takeaways of this article can be how Cosmo Films has always been an inspiration to many businesses for being innovative and technologically forward. The company, being one of the leading packaging producers in India has always put a good hand forward to help the country flourish by conducting CSR activities and at the same providing quality products.
The company has ever since gained huge recognition for being one of the companies to embrace digital marketing to make its products well known. With the current trend of customers buying everything online, businesses need to follow the same and retain their customers.
Digital Marketing is one such tool that can help businesses to approach a huge audience in the digital world. Thus, to be skilled at knowing the basics of digital marketing in today’s business scenario is a must. To learn more about digital marketing, you can head to our page and check out IIDE’S 3 Month Advanced Digital Marketing Course to know more. You can also start your journey in digital marketing by taking our short term certificate courses in digital marketing and learning different topics related to the field of digital marketing.
We hope this blog on the SWOT analysis of Cosmo Films has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
If you enjoy in-depth company research just like the SWOT analysis of Cosmo Films, check out our IIDE Knowledge portal for more fascinating case studies.
Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Cosmo Films in the comments section below.