Knack Packaging Bags ₹150 Crore Annual Contract from US Animal Nutrition Leader

Key numbers

Order Value	₹150 CrAnnual Revenue
Market Cap	₹2,210.77 CrContainers & Packaging
Net Profit Growth	47.94%YoY Quarterly
RSI	43.15Neutral Zone
Order from	One of the Largest private corporation in the World / Leader in Animal Nutrition and Feed Company
Execution period	3 years (till December 2028)

Key highlights

• Secured new order and contract renewal for a three-year period ending December 2028
• Annual order value estimated at ₹150 crore, totaling approximately ₹450 crore over the term
• Company to supply 60 million bags per annum including PLWPP and Pinch Bottom Bags
• Order received from one of the largest private corporations in the United States
• Contract reinforces the company's position as a global supplier in the animal nutrition space

Scope of the International Order

Knack Packaging Ltd has entered into a significant three-year agreement with a major international entity based in the United States. The contract, which runs through December 2028, covers the supply of advanced packaging solutions, specifically focusing on Poly Laminated Woven Polypropylene (PLWPP) Bags and Pinch Bottom Bags. The company expects to manufacture and deliver approximately 60 million bags annually under this arrangement.

With a projected value of ₹150 crore per year, this engagement represents a substantial commitment to the company's export-oriented production capacity and provides long-term revenue visibility within the specialized industrial packaging segment.

Client Profile and Market Significance

The contract has been awarded by an international corporation described as one of the largest private entities globally. Based in the United States, the client is a prominent leader in the animal nutrition and feed industry. This relationship underscores Knack Packaging's ability to meet the stringent quality and scale requirements of global market leaders.

By securing a renewal alongside new orders, the company demonstrates its reliability as a supply chain partner for high-volume, critical packaging materials used in the international agricultural and nutritional supply chains.

Business and Financial Context

• Specializes in PLWPP bags, BOPP laminated bags, and pinch bottom bags for industrial use
• Quarterly operating revenue reached ₹262.46 crore, marking a 41.1 percent year-on-year increase
• Maintains a strong promoter holding of 70.59 percent as of the latest reporting period
• Reported an annual Return on Equity of 30.08 percent, exceeding the sector average of 19.76 percent
• Current market capitalization stands at ₹2,210.77 crore within the commercial services and supplies sector

Industry Landscape

The global packaging sector is witnessing a shift toward specialized high-strength materials like PLWPP and pinch bottom bags to minimize product loss and enhance shelf life. Indian manufacturers are increasingly becoming preferred vendors for Western corporations looking to diversify their supply chains. Within the domestic industry, which currently carries a PE of 25.01, Knack Packaging faces competition from both unorganized and large-scale players.

However, the company's focus on niche segments and international certifications provides a competitive edge as global demand for animal nutrition packaging continues to scale alongside agricultural industrialization.

Knack Packaging · financial snapshot

Share price	₹180.67
Market capitalisation	₹2,210.77 Cr
Revenue (annual)	₹823.43
Net profit (annual)	₹92.72
Promoter holding	70.59%
FII holding	1.21%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.