Knack Packaging’s ₹320 Cr Capex from IPO to Expand India’s Packaging Supply Chain

For supply chain and logistics professionals, the Rs 320 crore earmarked for a new facility in Gujarat is the headline number. As an integrated manufacturer of PLWPP bags, Knack controls the entire production chain from polypropylene processing to final conversion—this can mean shorter lead times, consistent quality, and reduced dependency on fragmented suppliers. The expansion directly addresses capacity constraints in a market growing alongside food processing, chemicals, and construction, and could reshape packaging procurement strategies for large FMCG and agri-commodity players.

Knack Packaging Ltd., a Gujarat-based integrated manufacturer of printed and laminated woven polypropylene (PLWPP) bags, opened its initial public offering for subscription on July 1, 2026, seeking to raise Rs 439.5 crore at a price band of Rs 161–170 per share. At the upper end, the company is valued at Rs 2,080 crore. The issue consists of a fresh issuance of shares worth Rs 380 crore and an offer for sale (OFS) of up to 35 lakh shares valued at about Rs 59.5 crore by existing shareholders, providing a partial exit to early investors. The IPO closes on July 3, with allotment expected on July 6 and listing on both BSE and NSE on July 8. A grey market premium (GMP) of around 15% ahead of the issue signals strong initial demand.

“

EBITDA margins stood at 18.5%, and PAT margin at 11.0%, well above the peer average of around 7% (when compared with broadly adjacent packaging companies like Mold-Tek, TCPL Packaging, and Time Technoplast).

The company operates in a niche segment of flexible bulk packaging, with an estimated 10.1% market share in India’s PLWPP bags market. It serves over 1,950 customers across 71 countries, including marquee names like Cargill, KRBL, Drools, and DCM Shriram. An integrated manufacturing model—from polypropylene processing to printing and bag conversion—gives it control over quality and costs. For FY26, the company reported revenue from operations of Rs 823.4 crore, up from Rs 736.5 crore in FY25, with net profit rising to Rs 92.8 crore from Rs 73.8 crore. EBITDA margins stood at 18.5%, and PAT margin at 11.0%, well above the peer average of around 7% (when compared with broadly adjacent packaging companies like Mold-Tek, TCPL Packaging, and Time Technoplast). However, no other listed entity operates in the identical PLWPP bag segment, making direct valuation comparisons challenging.

The fresh issue proceeds are primarily earmarked for capital expenditure: approximately Rs 320 crore will be invested in setting up a new manufacturing facility at Borisana in Gujarat. This expansion is critical to meet rising domestic and export demand, as the flexible packaging market continues to grow alongside India’s food processing, agriculture, chemicals, and construction sectors. The move also aligns with government initiatives to boost domestic manufacturing and reduce import dependence.