中文Knack Packaging, a leading Indian manufacturer of BOPP-laminated woven packaging solutions, is entering its next phase of growth with an IPO-backed capacity expansion designed to meet surging demand for premium woven packaging formats across global and domestic markets.
Capacity Constraints Drive IPO Decision
The company is operating its facilities at 81.63% capacity utilization in FY26, leaving limited headroom to scale. With demand for PLWPP (printed laminated woven polypropylene) bags growing steadily, the natural next step is to add capacity through a greenfield facility. The IPO is primarily intended to fund this expansion, representing a growth-driven listing rather than a remedial capital raise.
The fresh issue is up to INR 3,800 million, of which INR 3,200 million is earmarked for a new manufacturing facility at Borisana in Kadi, Mehsana, Gujarat. Notably, the company has already invested INR 911.60 million into this project from internal accruals ahead of the IPO, meaning the proceeds will accelerate an existing plan rather than initiate one from scratch.
Expanding into High-Value Formats
Knack Packaging’s current effective installed capacity is approximately 43,300 MTPA. The new facility is designed to progressively lift that toward roughly 55,800 MTPA, adding approximately 12,500 MTPA of capacity. Critically, the expansion is not simply more of the same — it is focused on higher-value formats including pinch-bottom bags, block-bottom bags, laminated woven sacks, and gusseted formats, with built-in flexibility to handle both high-volume orders and small customised runs.
BOPP-laminated woven bags represent the company’s core product line, accounting for approximately 73% of product revenue. The BOPP lamination provides high-definition printability, gloss, moisture barrier, and durability that brand owners demand. Knack is strengthening this portfolio upward into premium formats, with pinch-bottom bags already representing over 20% of product revenue. The company holds the distinction of being the first in India and Asia to integrate a laser-cut, easy-open feature into pinch-bottom bags.
Diversified End-Use Demand
The demand driving Knack’s expansion is remarkably broad-based. The company serves food grains (rice, flour, sugar, salt), animal and pet food, agriculture and seeds, fertilizers, chemicals, cement, tile adhesives, building materials, and increasingly e-commerce. This diversification means the company is not over-exposed to any single demand cycle — a significant advantage in a market as volatile as industrial packaging.
Customer expectations are evolving simultaneously across three dimensions: stronger, better-performing packaging; premium, high-definition branding; and sustainability. This shift from basic coated woven bags toward PLWPP and specialised formats like pinch-bottom with easy-open convenience plays directly to Knack’s design depth and integrated manufacturing model.
Automation and Digital Integration
Automation plays a central role in Knack’s operations. The company runs advanced automation to improve product quality and consistency, including automatic bag-conversion lines. Its proprietary digital ecosystem, Knack Galaxy, provides real-time visibility across procurement, production, dispatch, and logistics, integrated with SAP S/4HANA and Microsoft Dynamics 365.
The company’s operational efficiency improvements are reflected in its financial performance. EBITDA margin has moved from 15.38% in FY24 to 20.42% in FY26, a improvement driven by three levers: vertical integration from extrusion through finishing, digitisation through Knack Galaxy, and the new facility’s design to remove capacity bottlenecks.
Sustainability Commitment
Roughly 80% of Knack’s energy already comes from renewable sources, and the company has set a target of 90% by 2030, backed by an 11 MW solar farm and a windmill. The company holds EN 15343 certification for recycled-content traceability, recycles process wastewater, and reprocesses production scrap into value-added products. “For us sustainability is operational, not cosmetic,” said Alpesh Patel, marketing director at Knack Packaging.
Market Outlook
According to the Technopak report, the Indian packaging market was valued at approximately INR 7,275 billion in FY2025 and is projected to reach roughly INR 9,195 billion by FY2029, a CAGR of about 6.0%. Globally, the PLWPP bags segment is projected to grow at around 5.0% CAGR through CY2029. Within this growth, PLWPP is emerging as a superior alternative to conventional coated woven bags, meaning the specialised, laminated end of the market is expected to grow faster than the overall average.
Knack Packaging already serves 71 countries and plans to extend its export footprint further post-IPO. The company’s strategy is built around five priorities: expand capacity through the Borisana greenfield, grow into new product categories and high-growth end-user industries, capitalise on rising PLWPP demand, deepen export presence, and advance automation and AI/ML capability — all while transitioning further toward sustainable operations.
A Model for Indian Packaging Growth
Knack Packaging’s IPO-backed expansion represents a broader trend in the Indian packaging industry: mid-sized, specialised manufacturers leveraging capital markets to fund capacity expansion and product portfolio upgrades. The company’s combination of vertical integration, digital operations, sustainability investment, and focus on premium formats provides a template for how Indian packaging manufacturers can compete both domestically and in export markets.
With 73,000-plus printing cylinders in its library, Knack functions as a custodian of its customers’ branding — a position that is difficult for new entrants to replicate. This installed base of printing assets, combined with the company’s integrated manufacturing model and growing capacity, positions it well to capture the expected growth in premium woven packaging demand over the coming years.
Source: The Packman (thepackman.in), 6 July 2026
