Knack Packaging Leases Factory, Plant & Machinery
Knack Packaging Ltd's Board of Directors approved taking on sub-lease of factory land and building, and lease of plant and machineries from Dayana Polyplast Limited. The transaction aims to enhance manufacturing capacity by 5,040 MT per annum, with immediate effect upon agreement execution and approvals. No capital expenditure is required for land, building, or machinery acquisition; costs will be limited to lease rentals, security deposits, installation, commissioning, and refurbishment. Financing will be through internal accruals and/or working capital facilities. The rationale includes meeting increasing customer demand, improving operational efficiency, and strengthening market presence without significant capital outlay.
Key Highlights
- Board approves sub-lease of factory land and building.
- Lease of plant and machineries also approved from Dayana Polyplast.
- Manufacturing capacity to increase by 5,040 MT per annum.
- No capital expenditure for asset acquisition; costs are operational.
- Financing via internal accruals and working capital facilities.
Price Impact
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