Cygnet Industries Ltd., a wholly-owned subsidiary of B.K. Birla Group company Kesoram Industries Ltd., is eyeing a 10% boost to its turnover through B2C and B2B sales of its newly-launched biodegradable food wrapper.
Called ‘Kesophane,’ the company is targeting the retail consumer. The product is positioned as a substitute for the existing food packaging options like foils and plastics. It would be introduced in Bengaluru and Mumbai markets soon.
Already being sold institutionally (to incense stick makers and the fireworks industry), Kesophane is manufactured from wood pulp.
It allows moisture permeability while minimising oxidation, making it an ideal green packaging option for the industries. “We are looking at a big way at the B2C segment and B2B segment in FMCG , food industry and the pharma sector for selling Kesophane,” said H. K. Kandoi, financial controller of the company.
In March 2016, KIL had decided to hive off its rayon and transparent paper business to Cygnet Industries Ltd , an unlisted entity, through a slump sale. Cygnet was later converted into a wholly owned subsidiary.
Mr Kandoi said that if this niche product takes off, it could contribute well to the top-line. Globally, such productswraps are made in the U.S., U.K., Japan and China. Kesoram Rayon had been making transparent papers since 1961, he said.
Cygnet Industries makes rayon, transparent papers and chemicals. About 60% of the revenue came from rayon, 10% from chemicals and the rest from paper. whileExports contribute 5%.
“The company expects to clock about ₹350 crore of revenue this fiscal , which we hope to increase to ₹400 crore and with this product, increasing our contribution to the parent’s turnover (of about ₹3,600 crore),” an official said.
“We are getting enquiries from FMCG players and also expecting demand from institutions like hospitals and hotels. Tea packers and exporters are also looking for biodegradable cellulose transparent papers with value addition,” he said.
