Specialty films manufacturer Cosmo First will invest Rs 500 crore as capital expenditure over the next two years towards capacity augmentation, and also to drive its films business, 'Zigly'.

The company which has an established presence in the segments of packaging, lamination and labeling applications, will enter the rigid-digit packaging space as part of its film business expansion by the next quarter of 2023, and will focus on the FMCG industry, using the thermoforming and injection moulding technology, largely led by polypropylene.

Cosmo First will also manufacture different types of containers for these brands, such as printed and labelled, and is looking to undertake the complete backward integration from masterbatch to films to sheets along the value chain.

Currently, the majority of the expansion activities will be in and around the company's three manufacturing facilities in India located at Aurangabad (two plants) and Vadodara (one plant). The unit in Korea caters to Korean and Japanese markets.

The company operates the packaging business, the chemicals business (Cosmo Speciality Chemicals), and the D2C start-up Zigly.