Knack Packaging (KPL) is an integrated packaging solutions provider focusing on innovation, exports, and sustainability.The company manufactures printed and laminated woven polypropylene (PLWPP) bags, including pinch bottom, gusset, block bottom, and retail shopping bags. These high-strength solutions are used across industries such as food, pet food, agriculture, fertilizers, building materials, detergents, cement, chemicals, minerals, and more.

The products enhance brand visibility, reduce counterfeiting risks, and improve operational performance. In FY2025, Knack Packaging Limited held around 10.1% share of the Indian flexible bulk PLWPP bag market.

It serves leading Indian names like Baba Agro Food Limited, Drools Pet Food Private Limited, Ebro India Private Limited, KRBL and DCM Shriram , along with global brands across 71 countries, including Cargill, Cristo S.A., and Repi Soap and Detergent PLC. Exports contribute a major share of operations, with the United States, Mexico, and South Africa accounting for 35.19% of total exports.

The company has its manufacturing facility located in Gujarat, spread across 1233435.57 sq ft with built up area of 924407.55 sq ft. These facilities are equipped with advanced machineries ensuring effective installed capacity of 43,300 MTPA.

The company is setting up a new manufacturing facility at Borisana, Kadi, in Mehsana district, Gujarat. The facility will manufacture printed and laminated woven polypropylene bags and PLWPP pinch-bottom bags. The total estimated project cost is about Rs 364.9 crore.

As on May 31, 2026, KPL had developed over 73,000+ printing cylinders, handled 13,379 SKUs, and maintained a 92,065.47 sq. ft. warehouse for storage, enabling consistent quality for more than 1,950+ customers worldwide.

As of FY2026, the company had a total workforce of 1,959 employees, including contractual workers.

Object of the offer

IPO comprises fresh issue of Rs 380 crore and an offer-for-sale (OFS) of up to 35,00,000 equity shares worth up to Rs 59.5 crore at higher price band of Rs 170. Promoter group members will offload a part of their stake in the OFS.

KPL will utilise Rs 320 crore from the net fresh issue proceeds for partial funding of capital expenditure towards setting up of new manufacturing facility at Borisana situated at Kadi, Mehsana, Gujarat and the remaining funds will be utilised for general corporate purposes.

Strengths

KPL has adopted a structured and technology-driven approach to manage supply chain, procurement, and production functions to support operational efficiency and cost control. Knack Galaxy, its proprietary solution, is central to this, which integrates and tracks critical business functions in real-time such as procurement, production, dispatch, and logistics management.

KPL has developed capabilities in engineering and manufacturing product designs that involve a high degree of complexity, technical precision, and process consistency. These capabilities cover a range of design and production aspects, including bag construction techniques, multi-layer lamination,and the incorporation of add-on features such as valve closures, integrated handles, various perforation patterns, and custom structural formats as per product requirements. Its bags can be fully customized with all available add-on features to meet specific client requirements.

Customer-centric customised packaging solutions.

KPL has established relationships with customers across diverse end-user industries, including grains, pulses, animal food amongothers. Over the years, the company consistently secured repeat orders, reflecting stable customer relationships. KPL exports itsproducts to clients across 71 countries. In FY2026, revenue from operations was distributed between export and domestic sales, contributing approximately 56.30% and 43.70% respectively.

KPL’s promoter consists of family of Alpesh Patel, Rashmin Patel and Pravin Patel, who have been engaged in the wovensacks industry since 1994 through partnership and proprietorship firms. Pravin Patel heads finance, Alpesh Patel overseesmarketing, and Rashmin Patel manages production. The promoters is supported by qualified and experienced functional teams,which aids in smooth day-to-day operations.

Weaknesses

Significantly dependence on key suppliers for sourcing raw materials and the does not have anycontractual arrangements with them.

KPL’s key raw materials include HDPE/PP granules and BOPP films, which it procures from domestic markets. These key rawmaterials, being derivatives of crude oil, make KPL’s operating profitability susceptible to volatility in crude oil prices. Also, margins are susceptible to foreign exchange rate.

Manufacturing facilities are concentrated in Gujarat, making operationsvulnerable to regional disruptions or facility shutdowns.

A significant share of revenue comes from the United States (US) market, exposing thecompany to geopolitical and economic risks in the region. The company derived around 23.7% of its revenues from US in FY2026.

The company derived around 33% and 41% of its revenues from top 5 and top 10 customers in FY2026 as such faces customer concentration risk.

Project cost revisions and implementation delays may impact expected returns and adversely affect the company‘s financial condition.

Failure on the company to acquire the necessary licences, registrations and permits to adversely affect the operations of the company.

Poly woven sacks & fabric industry is highly fragmented with the presence of many unorganised regional players. Intense competitionis also driven by low entry barriers in terms of capital and technology requirements and limited product differentiation.

Contingent liabilities and commitments as on March 31,2026stood at Rs 74.2 crore.

Valuation

Consolidated sales were up by 11.8% to Rs 823.43 crore in FY2026. Operating profit margin (OPM) expanded from 18.12% to 18.45%, leading to a 13.8% increase in operating profit to Rs 151.92 crore. Other income inclined 86.8% to Rs 20.34 crore. Interest cost declined 6.2% to Rs 15.91 crore while depreciationcost inclined by4.1% to Rs 29.30crore. PBTbefore EO stood at Rs 126.14crore,up 27.1%.Exceptional loss stood at Rs 1.08 crore in FY2026. PBT after EO stood at Rs 125.06 crore, up 25.6%. PAT stood at Rs 92.72 crore as against Rs 73.81 crore in FY2025.

At the higher price band of Rs 170, the offer is made at a P/E of 22.2 times FY2026EPS (of Rs 7.6).

Listed near comparable players are Kanpur Plastipak, Commercial Syn Bags and SPP Polymer. Kanpur Plastipak trades at 12.1 times its P/ FY2026 EPS, Commercial Syn bags trades at 24.2 times its P/FY2026EPS. However, SPP Polymer incurred losses in FY2026 as such PE could not be calculated.