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Pakka Limited plans to establish the world’s first compostable flexible packaging facility in Ayodhya

Pakka Limited plans to establish the world’s first compostable flexible packaging facility in Ayodhya

By August 13, 2024 1:56 pm IST

Pakka Limited raised INR 244.7 Cr in funding and will likely double its production capacity.

Pakka Limited, a leading manufacturer of compostable packaging solutions raised funding of INR 244.7 crore, approved by its board. The company plans to utilise these funds to establish the world’s first compostable flexible packaging facility in Ayodhya, India.

Pakka launched its compostable flexible packaging products in partnership with Brawny Bear, a nutrition company in October 2023. With this fund, the company intends to solidify its position as a leading global brand for compostable flexible packaging. As part of its expansion plans, Pakka’s compostable flexible packaging facility, the Jagriti project, is expected to be operational by December 2025. 

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Pakka aims to invest part of its funding in research and development to manufacture more products in the compostable flexible packaging category. This investment is expected to double the production capacity of Pakka’s manufacturing plant in Ayodhya. Pakka’s current EBITDA is 23%, which it expects to increase to 27-30% following the fundraise and completion of the expansion.”

Jagdeep Hira, India Business Head, Pakka Limited, said, “Sustainability and responsible packaging are the core of Pakka’s business strategy. The Jagriti project is an extension of this vision to contribute to a cleaner planet. This new facility will increase Pakka’s production capacity and strengthen our position in the flexible packaging industry. With this increase in the production of flexible packaging, Pakka can increase its distribution in the market. Our increased capacity will allow us to meet the growing demand for flexible packaging solutions across various sectors.” 

Ved Krishna, Group Lead, Pakka said, “Pakka is fundamentally rooted in the single idea of keeping the planet cleaner. Through our innovations in food service and flexible packaging, we are focused on developing compostable solutions that minimise environmental impact. With our compostable flexible packaging facility, we envision setting a new benchmark for sustainable packaging. Our innovation and intent to contribute towards a cleaner planet will go hand in hand as we expand our offerings. This funding will provide us with the much-needed impetus for infrastructural development and research.”

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