Kanpur Plastipack Limited , a leading manufacturer of flexible packaging solutions, has announced a series of strategic initiatives aimed at enhancing its production capacity and diversifying its product portfolio. The company's board approved these measures at a meeting held on November 10, 2025.

Capacity Enhancement and Infrastructure Modernization

Kanpur Plastipack plans to invest Rs 47.22 crore in capacity enhancement projects, which include:

1. A new FIBC (Flexible Intermediate Bulk Containers) division building at Unit 3 on Gajner Road, targeting an additional capacity of 6,000 MT over the next five years.
2. Implementation of a modern roll management system to improve inventory management and operational efficiency.
3. Construction of a new warehouse for the Trading Division, relocating it from a rented premise to improve logistics and operational efficiency.

Diversification into Non-Woven Fabrics

In a significant move towards product diversification, Kanpur Plastipack has approved an investment of Rs 58.04 crore to set up a greenfield manufacturing facility for non-woven fabrics using needle-punching technology. This initiative marks the company's entry into a new segment with applications in:

• Automotive interiors
• Artificial leathers
• Shoe insoles
• Exhibition carpets

New Director Appointment

The board has appointed Mr. Basant Seth as an Additional Independent Director. Mr. Seth, a qualified Chartered Accountant, brings over four decades of experience in banking and finance to the company. His appointment is subject to shareholder approval for a consecutive period of five years.

Employee Stock Option Scheme

Kanpur Plastipack has introduced its maiden Employee Stock Option Scheme-2025, covering 5,00,000 options convertible into equity shares of Rs 10 face value each. This move aims to align employee interests with the company's long-term growth objectives.

Joint Venture with Essegomma S.p.A.

The board has granted in-principle approval for a 50:50 joint venture with Italy's Essegomma S.p.A. The proposed joint venture company in India will focus on sales, marketing, and distribution of high-performance polypropylene yarn. This collaboration aims to enhance Kanpur Plastipack's technological capabilities and open new opportunities in global technical and luxury textile markets.

Financial Performance

For the quarter ended September 30, 2025, Kanpur Plastipack reported:

The company's performance shows significant improvement compared to the same quarter in the previous year, with a notable increase in both revenue and profitability.

These strategic initiatives and financial results indicate Kanpur Plastipack's commitment to growth, diversification, and enhancing shareholder value in the flexible packaging industry.

Kanpur Plastipack Limited , a leading manufacturer of Flexible Intermediate Bulk Containers (FIBC) and other plastic packaging solutions, has reported robust financial results for the quarter ended September 30, 2025, along with several strategic initiatives aimed at expansion and diversification.

Financial Performance

The company's consolidated financial results for Q2 FY2026 show significant growth:

The manufacturing division generated revenue of Rs. 14,969.30 lacs, while the trading division contributed Rs. 1,686.67 lacs.

Expansion and Modernization Initiatives

The Board of Directors has approved several capital expenditure projects:

1. FIBC Division Expansion: A new building at Unit 3 (Gajner Road) aims to increase FIBC production capacity by 6,000 MT per annum over the next five years.

2. Modern Roll Management System: To improve inventory management and operational efficiency.

3. Trading Division Warehousing: Relocation of the trading division warehouse to Gajner Road for better logistics.

The total investment for these initiatives is estimated at Rs. 47.22 crore.

Diversification into Non-Woven Products

Kanpur Plastipack plans to set up a greenfield manufacturing facility for non-woven fabrics using needle-punching technology. This Rs. 58.04 crore project marks the company's entry into advanced technical textiles with applications in automotive interiors, artificial leathers, shoe insoles, and exhibition carpets.

Joint Venture with Essegomma S.p.A.

The Board has given in-principle approval for a 50:50 joint venture with Italy-based Essegomma S.p.A. The joint venture company will focus on sales, marketing, trading, and distribution of high-performance polypropylene yarn, potentially opening new opportunities in global technical and luxury textile markets.

Employee Stock Option Scheme

The company has approved an Employee Stock Option Scheme - 2025, with an option pool of 5,00,000 stock options, exercisable into an equal number of equity shares.

Subsidiary Acquisition

On November 1, 2025, Kanpur Plastipack allotted 3,33,700 equity shares to Chairman and Managing Director Manoj Agarwal against the acquisition of a 76.19% stake in Valex Ventures Limited (UK), making it a subsidiary of the company.

Management Commentary

Manoj Agarwal, Chairman and Managing Director, stated, "Our strong Q2 performance reflects the resilience of our business model and the growing demand for our products. The strategic initiatives we've undertaken, including capacity expansion, diversification into non-woven fabrics, and the joint venture with Essegomma, position us well for sustained growth and value creation."

Kanpur Plastipack's multi-pronged approach to growth, combining organic expansion, diversification, and strategic partnerships, appears to be setting the stage for the company's next phase of development in the competitive packaging and technical textiles market.