Indian AC manufacturer EPACK to raise $21m from ICICI Ventures

Photo: Dewi Karuniasih / Unsplash.com

 EPACK Durable Pvt. Ltd, India’s second-largest contract manufacturer of room air-conditioners (RACs), will raise 160 crore from funds managed by private equity firm ICICI Ventures, as it plans to expand its manufacturing capacity significantly, top company executives said.

EPACK has manufacturing facilities in Dehradun, where it manufactures RACs and small household appliances (SHAs) for leading Indian and multinational company brands, as an outsourced design manufacturer with in-house R&D (research and development) capabilities.

It has an installed capacity of over 1 million RAC and 1 million SHA units.

The infusion of fresh equity capital will help the company expand capacity and focus on backward integration with addition of capacity for multiple components.

The company targets to increase its RAC capacity to 3 million units per annum by 2025, to capture the growing demand of RACs in India and cater to the needs of export markets as well.

“RAC penetration in India is lowest with penetration in 7-8% households only. Over the last two decades, EPACK has been building manufacturing capabilities to manufacture room air-conditioners and small home appliances. We have built strong business relationships with all key brands. The new capital will help us deepen our manufacturing and R&D capabilities, and gain more market share over the next 4-5 years,” Sanjay Singhania, promoter director, EPACK Durable said in an interview.

The company manufactures a complete range of room air-conditioners, including window ACs and split ACs, with the latest technology, including fixed speed and inverters.

The company also manufactures home appliances, including induction cooktops, mixer grinders and water dispensers.

The company plans to invest 500 crore in the next 4-5 years to expand its capacity and is already in the process of setting up a greenfield manufacturing facility near Bhiwadi in Rajasthan, which is expected to be commissioned in the third quarter of the current financial year.

It has also announced plans for setting up a greenfield manufacturing plant in South India, which is expected to be operational by Q3 of 2022.

The company aims to increase its capacity to 2.6 million by the end of 2022, said Singhania.

The company ended FY21 with a turnover of 760 crore and is aiming to hit a revenue of 1,100 crore in FY22, said B.L. Bothra, chairman of EPACK Durable.

The article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.