Pakka Limited, formerly Yash Papers Limited (and later Yash Pakka Limited), was established by K K Jhunjhunwala in Ayodhya in 1981. What began as a small paper mill has evolved into a pioneering sustainable packaging company with a yearly production capacity of 50,000 tonnes. The company addresses the growing demand for eco-friendly alternatives to traditional packaging materials.
Pakka Limited is an India-based regenerative packaging materials company providing sustainable solutions for food carry, packaging, and service. The company's product portfolio includes food carry materials, molded food service ware, flexible packaging, and agricultural pulp. Pakka operates through three main business segments: paper and pulp products, and moulded products, with the paper segment generating the maximum revenue.
Pakka has established itself as a true leader in sustainable manufacturing practices. The company's factory is powered by rice husk, and it recovers 95% of the chemicals used in its processes. Key features highlighting its commitment to sustainability include:
- All products produced are backyard compostable for sustainable packaging.
- The company is 100% based on its own biomass-based energy.
- 95% of cooking chemicals are recovered.
- All raw materials and fuels are sourced locally (within 200 km of the factory).
- The company actively works with local villages towards better education, sanitation, and employment.
Pakka is India's 1st Manufacturing B Corp and one of only seven public-listed B-Corps in the world. It has also been awarded as a Top 10 environmentally sustainable company by the B-Corp organization.
Pakka's product portfolio includes food carry materials used for major brands like McDonald's (takeaway), food grocery bags, bakery bags, and Myntra e-commerce bags. CHUK, its flagship product brand, produces 100% compostable tableware (meal trays, plates, bowls, and delivery containers) made from agricultural residues like sugarcane bagasse. CHUK products are microwaveable, freezable, and ovenable, and completely safe to eat from.
Launched in 2017, CHUK has achieved profitability within just six years of operations, demonstrating strong market acceptance for sustainable packaging solutions. Today, it has a presence in major cities of India and serves over 150 QSRs and institutional clients, including Haldiram's, Lite Bite Food, Chaipoint, Google, Starbucks, PVR, Inox, and Amazon.
Pakka Limited, 43 years after its humble beginnings, is a listed company with a turnover of ₹414 crore in 2023-24. The company has demonstrated consistent profitability, although it has not been paying dividends to shareholders.
Recent Quarterly Performance:
- Q3 FY25: Consolidated net profit fell 10.3% to ₹8.89 crore as against ₹9.91 crore in Q3 FY24. Sales, however, rose 6.71% to ₹106.01 crore in the quarter ended December 2024 as against ₹99.34 crore in the previous year.
- Q2 FY25: Net profit rose 52.21% to ₹16.88 crore as against ₹11.09 crore in Q2 FY24. Sales rose 5.73% to ₹111.09 crore as against ₹105.07 crore in the previous year.
- Market Capitalization: ₹962 crore (as of June 26, 2025)
- TTM Profit After Tax: ₹57 crore
- P/E Ratio: 16.96 times (as of June 26, 2025), representing a 3% discount to its peers' median range of 17.50 times.
- P/B Ratio: 2.08 times (as of June 26, 2025), representing a 117% premium to its peers' median range of 0.96 times.
- Revenue (FY23-24): ₹414 crore
- Promoter Holding: 41.65% (Mar 2025), decreased from 47.49% (Sep 2024).
Pakka's Ayodhya factory currently has a production capacity of 50,000 tonnes per year, with plans underway to expand this to 80,000 tonnes. The company is also broadening its global reach by establishing a new factory in Guatemala, which will have a production capacity of 1,30,000 tonnes. This facility is planned to be the biggest compostable flexible packaging and molded fiber manufacturing facility in the world, with a capacity of 400 TPD, primarily servicing the North American market.
The company has established a global footprint, with its products accessible in over 40 countries and offices in India and North America, alongside the planned facility in Guatemala.
The company's leadership includes Pradeep Vasant Dhobale as Chairman and Jagdeep Hira as Managing Director. The company has recently strengthened its leadership with key appointments and board restructuring. Promoter holding in Pakka Ltd stood at 41.65% as of March 2025.
The Board of Pakka, at its meeting held on October 14, 2024, approved the preferential allotment of 54 lakh equity shares at an issue price of ₹272 per share (including a premium of ₹262 per share) and 36 lakh convertible warrants at an issue price of ₹272 per warrant. The company has received ₹146.88 crore against the equity shares allotted and ₹24.48 crore as an upfront payment (25% of issue price per warrant) against the warrants allotted.
With a strong emphasis on R&D and innovation, Pakka has ambitious goals for the future, aiming to achieve a revenue of ₹1,400 crore by 2025. The company operates in a rapidly growing market; the sustainable packaging market is predicted to expand from USD 313.73 billion in 2025 to USD 557.65 billion by 2034, growing at a CAGR of 6.6% during the forecast period.
Pakka Limited stands uniquely positioned in the sustainable packaging industry with its innovative approach to manufacturing, strong commitment to environmental sustainability, and strategic expansion plans. The company's focus on compostable solutions, combined with its established market presence and global expansion strategy, makes it a significant player in the growing sustainable packaging market. While the company faces challenges in terms of recent earnings volatility and market competition, its pioneering position in sustainable manufacturing and strong brand recognition provide a solid foundation for future growth.
