Knack Packaging Limited IPO

The company is significantly dependent on its key suppliers for sourcing raw materials and the company does not have any contractual arrangements with them. Accordingly, the company's inability to maintain relationship with key suppliers may adversely impact its business, operations and financial results.

A significant portion of its revenue from operations is derived from the company's existing customers. Additionally, the company derives a substantial portion of its revenue from operations from few customers, and the company does not have any contractual arrangements with them. The company's failures to retain these customers may adversely impact its business, operations, and financial performance.

The company's manufacturing facilities are concentrated in a single region domestically i.e., Gujarat, which are critical to its business operations. Any shutdown of the company's manufacturing facilities due to adverse conditions in the state of Gujarat or other reasons may adversely affect its business, financial condition, results of operations, cash flows and future business prospects.

A significant percentage of its revenue (amounting to 26.61% of the company's total revenue) is derived from our customers in the United States. Any adverse situation in the United States, including any breakdown in India-US bilateral relations may adversely affect its business, results of operations, and financial condition

The development or adoption of alternative packaging materials, changes in consumer preferences, or advances in packaging technology may adversely affect the demand for its products and impact the company's business operations.

The company's success is largely dependent upon its ability to design and develop new sustainable packaging solutions suitable for evolving needs of the company's customers and market trends. Any inability to do so could adversely affect its business, financial condition, cash flows and results of operations.

The company's business is significantly dependent on its printing cylinders. Any loss, damage, or misuse of these assets, or disruption in related services, may materially and adversely impact the company's operations, customer relationships, and financial performance.

In order to price its products competitively, the company depends on sourcing raw material and packing materials in a cost-efficient manner. Non-availability of long-term agreements with its suppliers, among other reasons, may lead to inadequate or interrupted supply and price fluctuation of the company's raw materials and packaging materials, consequently and adversely affecting its business, results of operations, cash flows, profitability, and financial condition.

The company faces significant competition from domestic and international packaging companies which may lead to a reduction in the company's market share, which in turn may adversely affect its business, results of operations, financial condition and cash flows.

The company's significant exposure to foreign currency exchange rate fluctuations may adversely affect its results of operations, cash flows, and financial condition.