Knack Packaging, an integrated maker of printed and laminated woven polypropylene (PLWPP) bags, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company supplies high-strength, brand-forward bulk packaging (5–50 kg) to food, pet-food and industrial customers across India and 68 overseas markets.
Knack Packaging IPO Details
- Structure: Fresh issue + Offer for Sale (OFS)
- Fresh issue size: INR 475 crore
- OFS: 70,00,000 equity shares by promoters/promoter group
- BRLMs: Systematix Corporate Services, IDBI Capital Markets & Securities, Pantomath Capital Advisors
- Registrar: MUFG Intime India
Use of proceeds:
- INR 435 crore for a new manufacturing facility at Borisana (Kadi, Mehsana, Gujarat)
- Balance for general corporate purposes
Knack Packaging IPO: Promoter Selling Shareholders
| Name of Selling Shareholders | Type | Number of Shares Offered |
| Alpesh Tulsibhai Patel | Promoter Selling Shareholder | 13,51,500 |
| Pravinkumar Ambalal Patel | Promoter Selling Shareholder | 6,00,000 |
| Rashminbhai Tulsibhai Patel | Promoter Selling Shareholder | 13,51,500 |
| Tulsibhai Keshavlal Patel | Promoter Group Selling Shareholder | 7,24,000 |
| Patel Kamlesh Ambalal | Promoter Group Selling Shareholder | 6,15,000 |
| Dharmisthaben Pravinbhai Patel | Promoter Group Selling Shareholder | 2,50,000 |
| Shital Alpesh Patel | Promoter Group Selling Shareholder | 5,96,500 |
| Divyaben Rashminkumar Patel | Promoter Group Selling Shareholder | 5,96,500 |
| Patel Jay Pravinkumar | Promoter Group Selling Shareholder | 3,40,000 |
| Shitalben Kamlesh Patel | Other Selling Shareholder | 5,75,000 |
Business Overview
Knack Packaging has built a reputation as an integrated packaging solutions provider. Its core product line includes PLWPP bags and pinch-bottom variants designed for strength, durability, and high-quality printing. The company differentiates itself through advanced features such as six-sided branding, laser-cut easy-open closures, and anti-counterfeit safeguards like RFID, QR codes, barcodes, and hot stamping. These solutions not only provide functional advantages in logistics and storage but also enhance brand visibility for its clients.
The customer roster is a mix of marquee domestic and global names. In India, Knack supplies to Baba Agro, Drools Pet Food, KRBL, and DCM Shriram, while international clients include Cargill, Cristo S.A., and Sacos y Empaques Internacionales. In Fiscal 2025, exports contributed 56.24% of revenue, reflecting the company’s strong overseas traction, particularly in North America and Mexico. With around 10.1% share of India’s flexible bulk PLWPP bag market (FY25, Technopak), Knack is positioned as a market leader.
Tracing its journey back to 2006, the company started as a proprietorship under promoter Rashminbhai Tulsibhai Patel before becoming a partnership in 2012 and later incorporating as a private limited company in 2013. It began with a modest 400 MT/month capacity but expanded steadily, introducing metallized and block-bottom bags, moving into exports by 2018, and setting up a new facility at Indrad in 2020.
With a portfolio of over 12,000 SKUs and a proprietary library of more than 67,000 cylinders, Knack provides consistent branding solutions to its 1,900-plus customers, enhancing client stickiness. Its vertically integrated manufacturing base in Gujarat adds to its ability to deliver customized, high-quality solutions at scale.
Manufacturing & Capacity
Knack operates three manufacturing units in Gujarat.
- Unit 1 (Borisana): A mix of leased and owned premises, producing PLWPP finished goods.
- Unit 2 (Indrad): A leased facility focused on woven fabric production.
- Unit 3 (Borisana, Saket Industrial Estate): Recently leased (Feb 2025), producing tapeline and liner products, with approvals under Praspack Polymers.
Consolidated capacity (FY25):
- Installed: 47,500 MT
- Effective installed: 36,400 MT
- Actual production: 31,297 MT
- Utilisation: 86%
Unit 2 has operated at near-full utilisation (98%), while Unit 3 remains in an early ramp-up stage.
Financial Performance
The company has shown strong financial momentum in the last three years.
| Metrics | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from operations | 518.4 | 654.6 | 736.5 |
| EBITDA | 54.8 | 101.4 | 144.3 |
| EBITDA margin | 10.6% | 15.4% | 19.3% |
| PAT | 19.9 | 46.0 | 73.8 |
| PAT margin | 3.8% | 7.0% | 9.9% |
| RoCE | 29.2% | 45.4% | 50.4% |
| RoE | 24.6% | 38.4% | 41.7% |
| Debt-equity ratio | 1.29x | 1.23x | 0.80x |
Revenue has grown at double-digits, while margins have nearly doubled in three years, indicating strong operating leverage. Return ratios remain among the best in the sector, and leverage has steadily declined.
Customers & Concentration
Knack’s customer base spans more than 1,900 accounts across geographies. However, revenue is concentrated, with the top 10 customers contributing ~44% in FY25, compared to ~34% in FY23. Global agribusiness giant Cargill alone contributed 19% in FY25, making it the single largest client.
By geography, USA, Mexico, and South Africa accounted for 32.8% of total revenue in FY25.
Conclusion
Knack Packaging presents a story of capacity-led expansion, export-driven growth, and rising profitability. With margins and returns among the strongest in the packaging space, the company’s move to list comes at a time when investor appetite for speciality packaging and sustainability-linked plays is strong. Knach Packaging IPO will test how the market values the company against established peers like UFlex, Cosmo Films, and Polyplex.
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