Knack Packaging Ltd Approves Sub-Lease of Land and Plant Lease to Boost Manufacturing Capacity
Knack Packaging Ltd., a manufacturer and exporter of PE/PP Woven Fabrics and Printed and Laminated Woven PP Bags, has approved a transaction aimed at significantly enhancing its manufacturing capacity. The Board of Directors sanctioned the sub-lease of factory land and building, along with the lease of plant and machineries, from Dayana Polyplast Limited.
The company's decision to secure these assets was designed to meet increasing customer demand, optimize production timelines, and strengthen market presence without incurring substantial capital expenditure for acquisition.
Following the Board meeting held on July 15, 2026, the management confirmed that the transaction would result in an increase in the Company’s manufacturing capacity. The board authorized Mr. Alpesh Patel, Chairman & Managing Director, along with Mr. Rashmin Patel and Mr. Pravin Patel, Whole-time Directors, to negotiate, finalize, and execute all necessary agreements related to the sub-lease and plant lease from Dayana Polyplast Limited.
Capacity Enhancement Details
The expansion project details show a clear focus on increasing production output through the acquisition of leased assets.| Particulars | Detail |
|---|---|
| Existing Capacity | 43,300 MT per annum |
| Existing Capacity Utilization | 81.63% |
| Proposed Capacity Addition | 5,040 MT per annum |
| Period for Addition | Immediately upon execution of agreements and receipt of necessary approvals/consents |
The transaction is supported by internal accruals and working capital facilities as the mode of financing. The investment required involves lease rentals, security deposits (if any), installation, commissioning, and refurbishment expenses, noting that no capital expenditure was needed toward the acquisition of land, building, or plant & machinery. This strategy aims to efficiently achieve manufacturing capacity enhancement while responding to market demands.
KNACK Stock Price Movement
Shares of Knack Packaging Limited slipped by 1.44% on Wednesday, settling at ₹202.11 after the stock traded against its previous close of ₹205.06. The security recorded a total traded volume of 1.75 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.