Knack Packaging wins ₹150 crore annual US contract

Knack Packaging Limited (NSE: KNACK) has secured a three-year contract from a major US-based animal nutrition and feed company. The contract is valued at about ₹150 crore per year and runs until December 2028. Muthoot Securities Key details • The company will supply around 60 million PLWPP and Pinch Bottom bags annually. • Estimated contract value is ₹150 crore per year. • The agreement runs for three years, up to December 2028. • The customer is a large private corporation in the US animal nutrition and feed industry. • The transaction is not a related-party arrangement. My view The useful part of this contract is the multi-year visibility. For a packaging manufacturer, a recurring annual supply commitment can support capacity utilisation and make revenue planning more predictable. But ₹150 crore is the annual contract value, not immediate revenue. The real impact will depend on the pace of supply, raw-material costs and the margins earned on the export business. What I’m watching next I will watch quarterly export growth, margin performance and whether Knack Packaging wins additional long-duration overseas contracts. Stance: Positive on revenue visibility and export diversification. Margin execution will determine the quality of the growth. Disclosure: I do not have any holding or position in the stock mentioned above.