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Entrepreneur
11 hours ago
- Business
- Entrepreneur
EPACK Durables to Invest 500 Crore to Expand Beyond Core AC Business
AC's contribute more than half to the overall business growth, however, anticipating a drop in the segment in the coming few years, the company is looking at reducing dependence on a single portfolio Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Over the years, EPACK Durable, has evolved from being an air conditioner (AC) manufacturer to a full-fledged home appliances company. With its AC's contribution coming down from 80 percent to 70 percent last year, and likely to reduce further around 60 percent, EPACK is reducing dependence on seasonal demand. AC's contribute more than half to the overall business growth, however, anticipating a drop in the segment in the coming few years, the company is looking at reducing dependence on a single portfolio. In the next 12–18 months, the company plan to invest INR 400–500 crore as part of its expansion plans. Its other segments such as large domestic appliances, like air coolers, washing machines, and small kitchen appliances like mixer grinders and induction cooktops, are expanding at a fast pace. "This year alone, we are launching three new products- washing machines, air fryers, and nutri-blenders as part of our portfolio expansion efforts. This evolving product mix positions us well to offset the seasonality in AC demand and drive more stable, consistent growth across our broader appliance portfolio," said Ajay DD Singhania, MD & CEO, EPACK Durable. The new investment of INR 400–500 crore, will be used to expand capacity at Southern and Northern plants. In addition to this, it is also working towards setting up a dedicated manufacturing facility for its new partnership with Hisense, for manufacturing both ACs and other appliances. Non-AC seasonal products are a big focus and it is growing more than 100 percent year on year (YoY). "We have set up a new line for air-fryers in our Bhiwadi facility, with an output of producing 400 air-fryers every hour. We received a great response and the company is currently manufacturing air-fryers for two of the biggest home appliances companies in India," he added. Last year, EPACK Durable closed a revenue of INR 2,170 crore. It aims to reach a revenue milestone of INR 5000 Cr over the next three years. Although, the overall market of AC, saw a de-growth of around 15-20 percent this year, there is a renewed surge demand in June. To manage the situation proactively, production was put on hold for June to prioritize liquidating existing inventory. "With overflow inventory now beginning to clear and market movement improving, we expect better visibility and a potential ramp-up in production from July onwards." Over the past few years, EPACK Durable has evolved into an ODM (original design manufacturer) and OEM (original equipment manufacturer) company, driven by consistent investments in backward integration across key components. "Today, EPACK Durable stands out with one of the highest levels of backward integration in the industry. In the AC segment, we produce nearly all critical components in-house—including heat exchangers, copper-fabricated parts, cross-flow fans, and more—with compressors being the only major element sourced externally." Moving ahead, it plans to strengthen product portfolio with nutriblenders, coffee makers and vacuum cleaners. Additionally, the components business is also gaining momentum. "Earlier, our motor and controller capabilities were for internal use; now we are offering them as products to other customers, which are contributing significantly to the growth," the CEO said, explaining the future projects. Over the years, EPACK Durable, has evolved from being an air conditioner (AC) manufacturer to a full-fledged home appliances company. With its AC's contribution coming down from 80 percent to 70 percent last year, and likely to reduce further around 60 percent, EPACK is reducing dependence on seasonal demand. AC's contribute more than half to the overall business growth, however, anticipating a drop in the segment in the coming few years, the company is looking at reducing dependence on a single portfolio. In the next 12–18 months, the company plan to invest INR 400–500 crore as part of its expansion plans. Its other segments such as large domestic appliances, like air coolers, washing machines, and small kitchen appliances like mixer grinders and induction cooktops, are expanding at a fast pace. "This year alone, we are launching three new products- washing machines, air fryers, and nutri-blenders as part of our portfolio expansion efforts. This evolving product mix positions us well to offset the seasonality in AC demand and drive more stable, consistent growth across our broader appliance portfolio," said Ajay DD Singhania, MD & CEO, EPACK Durable. The new investment of INR 400–500 crore, will be used to expand capacity at Southern and Northern plants. In addition to this, it is also working towards setting up a dedicated manufacturing facility for its new partnership with Hisense, for manufacturing both ACs and other appliances. Non-AC seasonal products are a big focus and it is growing more than 100 percent year on year (YoY). "We have set up a new line for air-fryers in our Bhiwadi facility, with an output of producing 400 air-fryers every hour. We received a great response and the company is currently manufacturing air-fryers for two of the biggest home appliances companies in India," he added. Last year, EPACK Durable closed a revenue of INR 2,170 crore. It aims to reach a revenue milestone of INR 5000 Cr over the next three years. Although, the overall market of AC, saw a de-growth of around 15-20 percent this year, there is a renewed surge demand in June. To manage the situation proactively, production was put on hold for June to prioritize liquidating existing inventory. "With overflow inventory now beginning to clear and market movement improving, we expect better visibility and a potential ramp-up in production from July onwards." Over the past few years, EPACK Durable has evolved into an ODM (original design manufacturer) and OEM (original equipment manufacturer) company, driven by consistent investments in backward integration across key components. "Today, EPACK Durable stands out with one of the highest levels of backward integration in the industry. In the AC segment, we produce nearly all critical components in-house—including heat exchangers, copper-fabricated parts, cross-flow fans, and more—with compressors being the only major element sourced externally." Moving ahead, it plans to strengthen product portfolio with nutriblenders, coffee makers and vacuum cleaners. Additionally, the components business is also gaining momentum. "Earlier, our motor and controller capabilities were for internal use; now we are offering them as products to other customers, which are contributing significantly to the growth," the CEO said, explaining the future projects.
Time of India
22-04-2025
- Business
- Time of India
India stays cool, thanks to China. Can that change?
The India n Meteorological Department (IMD) has said that India is set to face hotter-than-usual temperatures from April to June, with the Central, Eastern and Northwestern plains expected to experience more heatwave days. North More than 20 cities have already seen temperatures shoot past 42°C, with Delhi, parts of Uttar Pradesh, and Rajasthan facing intense heatwave-like conditions. The India Meteorological Department (IMD) says it's only going to get hotter in the coming days. More and harsher heat waves can further aggravate a summer problem of India -- it depends on China to stay cool. India's room air-conditioner industry is still dependent on imports of crucial components such as compressors, PCBs, and fan motors, mainly from China, and is anxiously looking at the tariff standoff triggered by the Trump administration. Compressor availability from China had reduced sharply till January due to higher US supplies at the cost of countries like India, contract manufacturer Epack Durable's CEO Ajay DD Singhania had told ET. Local production of AC compressors is just about 35 per cent of the demand. Grooved copper tubes are other AC components in short supply. The shortfall in local supply of AC components is largely filled by Chinese imports. Echoing the demand of the industry, Panasonic India head Manish Sharma told PTI a separate production-linked incentive (PLI) scheme for the air conditioner segment, focusing on high-value components like compressors and motors, is the need of the hour. Will air-conditioner prices soar? Intermittent rainfall in south India and recent thunderstorms with moderate rain in some parts of north and eastern regions have slowed down the pace of sales of room air conditioners in April, but the industry is still expecting a double-digit growth with recent weather forecasts suggesting an intense summer. Consumers looking to stay cool this season may find themselves facing higher costs as the industry grapples with two main challenges: increasing import costs due to a weak rupee and ongoing disruptions in the supply chain, particularly with key components such as compressors. Suppliers with large order books from India are acting in a "little miser way", said Jasbir Singh, chief executive of Amber Enterprises, the largest AC contract manufacturer in India, ET had reported in February. The company is looking at other markets for supplies, he had told analysts in an earnings call. Due to these reasons, several companies are considering price hikes. Although price increases are unlikely to dampen AC sales due to the availability of EMIs, stocking (of AC units) is going to be a concern. "There are chances that consumers may not be able to get a brand or model of their choice," Nilesh Gupta, director at Vijay Sales, had told TOI in February. Govt's exemption for Chinese AC components suppliers A recent exemption made by the government might moderate price hikes. Last month, The government exempted certain critical AC and refrigerator components from mandatory Bureau of Indian Standards (BIS) certification to prevent an acute shortage. The Department for Promotion of Industry and Internal Trade (DPIIT) lifted the BIS certification of factory requirement for grooved copper tubes and AC compressors of 2 tonnes and above capacity, including those imported from China, meeting industry demand. While DPIIT has not yet extended similar exemptions to AC compressor s of less than two tonnes and refrigerator compressors, three senior industry executives told ET last month the government was actively considering this and a notification was likely soon. "We expect a BIS waiver for refrigerator compressors and those used in ACs with below two-tonne capacity," an industry executive had told ET. "The AC compressor BIS waiver is immediately required since local capacities are still just 40-45 per cent of the demand, while the situation is better for refrigerator compressors as some companies like LG, Godrej and Samsung manufactures them locally." AC and refrigerator manufacturers had flagged possibilities of acute shortage of products this summer due to non-BIS certification of their copper and compressor vendors in China and nearby countries. It is mandatory for brands to ensure BIS approval of the factories from where the components of ACs and refrigerators are sourced, be it in India or abroad, as per government rules. The country's largest AC contract manufacturer Amber Enterprises had said in its earnings call in February said production in April will be impacted due to component shortage. India to manufacture more compressors The government is considering a flexible approach on potential joint ventures between Indian and Chinese companies for air conditioner and refrigerator compressor manufacturing as it looks to enhance local capacities to meet surging demand and make the country self-sufficient on these critical white goods components, ET reported last month. With forecasts of an intense summer this year, adding to record temperatures in 2024, the government has asked AC and refrigerator makers to build more compressor manufacturing factories, three industry executives had told ET. Government officials have told ET the Centre is examining suggestions to allow JVs with Chinese firms only for manufacturing critical components as long as the Indian partner is a majority stakeholder. "The government is taking a relook at the PLI (production-linked incentive) scheme for white goods as there is some budget available for them. There is a shortage of compressors and that is being looked into," an official said. An industry executive said the PLI for white goods needs to address high-value investments such as compressor manufacturing with greater incentives since setting up such a facility would require Rs 250-400 crore investment. In 2023, Voltas had to scrap an AC compressor manufacturing plan since its JV proposal with China's Highly Group did not receive Press Note 3 approval from the government. Press Note 3 norms mandate government approval before any foreign direct investment from an entity in a country that shares its land border with India, such as China. The stricter rules followed worsening of India-China relations after a deadly border clash between the two armies in early 2020.
Time of India
21-04-2025
- Business
- Time of India
India stays cool, thanks to China. Can that change?
The Indian Meteorological Department (IMD) has said that India is set to face hotter-than-usual temperatures from April to June, with the Central, Eastern and Northwestern plains expected to experience more heatwave days. North More than 20 cities have already seen temperatures shoot past 42°C, with Delhi, parts of Uttar Pradesh, and Rajasthan facing intense heatwave-like conditions. The India Meteorological Department (IMD) says it's only going to get hotter in the coming days. More and harsher heat waves can further aggravate a summer problem of India -- it depends on China to stay cool. India's room air-conditioner industry is still dependent on imports of crucial components such as compressors, PCBs, and fan motors, mainly from China, and is anxiously looking at the tariff standoff triggered by the Trump administration. Compressor availability from China had reduced sharply till January due to higher US supplies at the cost of countries like India, contract manufacturer Epack Durable's CEO Ajay DD Singhania had told ET. Local production of AC compressors is just about 35% of the demand. Grooved copper tubes are other AC components in short supply. The shortfall in local supply of AC components is largely filled by Chinese imports. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Echoing the demand of the industry, Panasonic India head Manish Sharma told PTI a separate production-linked incentive (PLI) scheme for the air conditioner segment, focusing on high-value components like compressors and motors, is the need of the hour. Also Read: Need separate PLI for compressors, motors: Panasonic India head Live Events You Might Also Like: Govt exempts critical AC and refrigerator components from BIS certification to prevent shortage during summer Will air-conditioner prices soar? Intermittent rainfall in south India and recent thunderstorms with moderate rain in some parts of north and eastern regions have slowed down the pace of sales of room air conditioners in April, but the industry is still expecting a double-digit growth with recent weather forecasts suggesting an intense summer. Consumers looking to stay cool this season may find themselves facing higher costs as the industry grapples with two main challenges: increasing import costs due to a weak rupee and ongoing disruptions in the supply chain, particularly with key components such as compressors. Suppliers with large order books from India are acting in a "little miser way", said Jasbir Singh, chief executive of Amber Enterprises, the largest AC contract manufacturer in India, ET had reported in February. The company is looking at other markets for supplies, he had told analysts in an earnings call. Due to these reasons, several companies are considering price hikes. Although price increases are unlikely to dampen AC sales due to the availability of EMIs, stocking (of AC units) is going to be a concern. "There are chances that consumers may not be able to get a brand or model of their choice," Nilesh Gupta, director at Vijay Sales, had told TOI in February. Govt's exemption for Chinese AC components suppliers A recent exemption made by the government might moderate price hikes. Last month, The government exempted certain critical AC and refrigerator components from mandatory Bureau of Indian Standards (BIS) certification to prevent an acute shortage. The Department for Promotion of Industry and Internal Trade (DPIIT) lifted the BIS certification of factory requirement for grooved copper tubes and AC compressors of 2 tonnes and above capacity, including those imported from China, meeting industry demand. You Might Also Like: India warms up to China to stay cool this summer; Asks AC, fridge cos to build factories for compressors While DPIIT has not yet extended similar exemptions to AC compressors of less than two tonnes and refrigerator compressors, three senior industry executives told ET last month the government was actively considering this and a notification was likely soon. "We expect a BIS waiver for refrigerator compressors and those used in ACs with below two-tonne capacity," an industry executive had told ET. "The AC compressor BIS waiver is immediately required since local capacities are still just 40-45% of the demand, while the situation is better for refrigerator compressors as some companies like LG, Godrej and Samsung manufactures them locally." AC and refrigerator manufacturers had flagged possibilities of acute shortage of products this summer due to non-BIS certification of their copper and compressor vendors in China and nearby countries. It is mandatory for brands to ensure BIS approval of the factories from where the components of ACs and refrigerators are sourced, be it in India or abroad, as per government rules. The country's largest AC contract manufacturer Amber Enterprises had said in its earnings call in February said production in April will be impacted due to component shortage. India to manufacture more compressors The government is considering a flexible approach on potential joint ventures between Indian and Chinese companies for air conditioner and refrigerator compressor manufacturing as it looks to enhance local capacities to meet surging demand and make the country self-sufficient on these critical white goods components, ET reported last month. With forecasts of an intense summer this year, adding to record temperatures in 2024, the government has asked AC and refrigerator makers to build more compressor manufacturing factories, three industry executives had told ET. Government officials have told ET the Centre is examining suggestions to allow JVs with Chinese firms only for manufacturing critical components as long as the Indian partner is a majority stakeholder. "The government is taking a relook at the PLI (production-linked incentive) scheme for white goods as there is some budget available for them. There is a shortage of compressors and that is being looked into," an official said. An industry executive said the PLI for white goods needs to address high-value investments such as compressor manufacturing with greater incentives since setting up such a facility would require Rs 250-400 crore investment. In 2023, Voltas had to scrap an AC compressor manufacturing plan since its JV proposal with China's Highly Group did not receive Press Note 3 approval from the government. Press Note 3 norms mandate government approval before any foreign direct investment from an entity in a country that shares its land border with India, such as China. The stricter rules followed worsening of India-China relations after a deadly border clash between the two armies in early 2020. (With agency and TOI inputs)
