GURGAON, INDIA (July 7, 3 p.m. ET) — India's SRF Ltd. is setting up its second overseas packaging film plant, in South Africa.
The Gurgaon-based company plans to make biaxially oriented polypropylene film at a 20-acre site in Durban. The company is in the final stages of acquiring the property.
SRF is investing about US$70 million in the 30,000 metric ton-per-year plant, according to Prashant Mehra, vice president of marketing and strategic sourcing. The company plans to start up the plant in the second quarter of 2013.
SRF believes the South African market offers opportunities for growth, in part because local customers currently depend on imported film.
“We find a decent BOPP market in South Africa, apart from that the country is known for gateway to the southern African as well as South American market,” Mehra said.
The new unit will mark SRF's maiden entry into BOPP film. The company currently has two plants in India, in Indore and Kashipur, which have capacity to make 57,000 metric tons of PET film annually. SRF also has plans to set up a PET film plant in Bangladesh.
Mehra said SRF is open to the idea of making BOPP film in India, but it does not have a timeline for investment there.
“We know the packaging market is growing rapidly in India and offers growth prospects,” he said.