Compostable food packaging solution manufacturer Pakka Limited has raised Rs 244.7 crore to ramp up its R&D efforts and scale its production facility.
The company plans to utilise these funds to establish a compostable flexible packaging facility in Ayodhya, India, it said in a press note.
The Ayodhya facility is expected to become functional by 2026. The company said that the investment is expected to double the production capacity of its manufacturing plant.
“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,” said Jagdeep Hira, India Business Head, Pakka Limited.
“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,” he added.
Pakka also plans to use a part of the proceeds for research and development to manufacture more types of products in the compostable flexible packaging category.
“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,” said Ved Krishna, Group Lead, Pakka.
Pakka’s current EBITDA stands at 23%, with expectations to rise to between 27% and 30% after the completion of the fundraising and expansion.
