INDIA – Pakka, a leading provider of compostable packaging solutions in India, has secured an investment of Rs2.44 billion (US$29.06 million) to enhance its production capabilities.
While the specific investors have not been disclosed, the Press Trust of India (PTI) reports that Pakka will use the funds to develop a new compostable flexible packaging facility in Ayodhya, Uttar Pradesh.
This investment follows Pakka’s introduction of compostable flexible packaging products last October, launched in collaboration with the nutrition brand Brawny Bear.
The new facility, expected to be fully operational by December 2025, is a key part of the company’s expansion strategy.
Additionally, Pakka plans to invest some of the investment in research and development in the compostable flexible packaging sector.
The investment is also expected to double the output of Pakka’s manufacturing plant in Ayodhya, significantly boosting its production capacity and solidifying its position in the flexible packaging industry.
According to Pakka India Business Head, Jagdeep Hira, “With this increase in the production of flexible packaging, Pakka can expand its market distribution. Our enhanced capacity will enable us to meet the growing demand for flexible packaging solutions across various sectors.”
Pakka Group Lead, Ved Krishna, added, “This funding will provide us with the much-needed impetus for infrastructural development and research.”
Pakka’s venture into flexible packaging represents a natural progression for the company, which has spent over four decades producing compostable pulp and paper packaging solutions as well as molded tableware.
With ambitious plans to scale up production of eco-friendly packaging solutions over the next three years, Pakka’s global manufacturing facilities in Ayodhya, India, and Guatemala are set to become hubs of innovation and production.
Launching India’s first compostable flexible packaging aligns with the global expansion of sustainable packaging solutions.
According to a report by Mordor Intelligence, the Indian packaging market is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.6% from 2023 to 2028.
Despite this growth, India’s per capita consumption of flexible packaging remains at 11 kg, significantly below the global average of 28 kg per capita, indicating substantial untapped market potential.
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