Pakka raises funding to double its production capacity for Ayodhya

In October 2023, Pakka launched its compostable flexible packaging products in partnership with Brawny Bear, a nutrition company. With this fund, the company intends to solidify its position as a 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. 

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 fund raise and completion of the expansion.

Jagdeep Hira, India business head, Pakka, 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, we can increase our distribution in the market.”

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.” He added, “With our compostable flexible packaging facility, we envision setting a new benchmark for sustainable packaging. This funding will provide us with the much-needed impetus for infrastructural development and research.”