EPACK Durable Limited: Comprehensive Company Profile

Background

Company Overview

EPACK Durable Limited, established in 2003, is a prominent Indian Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) specializing in consumer durables. The company focuses on designing and manufacturing a diverse range of products, including room air conditioners (RACs), small domestic appliances (SDAs) such as induction cooktops, mixer grinders, and water dispensers, as well as critical components like heat exchangers, cross-flow fans, and printed circuit board assemblies (PCBAs). Headquartered in Noida, Uttar Pradesh, EPACK Durable has expanded its operations across multiple manufacturing facilities in India.

Mission and Vision

EPACK Durable is committed to delivering high-quality, innovative, and energy-efficient consumer durable products that enhance the lives of consumers. The company's vision is to become a global leader in the consumer durables industry by leveraging cutting-edge technology, fostering strong customer relationships, and maintaining a relentless focus on operational excellence.

Industry Significance

As the second-largest room air conditioner ODM in India, EPACK Durable plays a crucial role in the country's consumer durables sector. The company's extensive product portfolio and strategic partnerships with leading brands position it as a key player in meeting the growing demand for high-quality, energy-efficient appliances in both domestic and international markets.

Key Strategic Focus

Core Objectives

Product Diversification: Expand the existing product portfolio to include a broader range of consumer durables, thereby reducing dependency on seasonal products like air conditioners.

Operational Efficiency: Enhance manufacturing capabilities through vertical integration and process optimization to improve cost-effectiveness and product quality.

Market Expansion: Strengthen presence in domestic markets and explore international opportunities to increase market share and revenue streams.

Areas of Specialization

Room Air Conditioners (RACs): Design and manufacture of window air conditioners (WACs), indoor units (IDUs), outdoor units (ODUs), and split inverter air conditioners with various energy ratings and refrigerants.

Small Domestic Appliances (SDAs): Production of induction cooktops, mixer grinders, and water dispensers.

Component Manufacturing: Fabrication of essential components such as heat exchangers, cross-flow fans, axial fans, sheet metal press parts, injection-molded components, copper fabricated products, PCBAs, universal motors, and induction coils.

Key Technologies Utilized

Advanced Manufacturing Techniques: Implementation of state-of-the-art manufacturing processes to ensure high product quality and efficiency.

Research and Development (R&D): Investment in R&D centers equipped with endurance test labs and other advanced equipment to drive innovation and product development.

Primary Markets Targeted

Domestic Market: Catering to the growing demand for consumer durables in India, driven by factors such as rising disposable incomes, urbanization, and increasing temperatures.

International Market: Exploring opportunities in global markets, particularly in regions with similar climatic conditions and consumer preferences.

Financials and Funding

Funding History

Private Equity Rounds: EPACK Durable raised two rounds of private equity funding in 2021 and 2022 to support its expansion plans and enhance manufacturing capabilities.

Initial Public Offering (IPO): The company launched its IPO in January 2024, raising ₹640 crore. The IPO comprised a fresh issue of ₹400 crore and an offer for sale of ₹240 crore.

Utilization of Capital

Manufacturing Expansion: Funds have been allocated to establish new manufacturing facilities, including a plant in Sri City, Andhra Pradesh, with an investment of ₹200 crore.

Debt Repayment: A portion of the capital has been used to repay and prepay certain outstanding loans to strengthen the company's financial position.

General Corporate Purposes: Remaining funds are designated for general corporate purposes to support ongoing operations and strategic initiatives.

Pipeline Development

Product Expansion

New Product Launches: EPACK Durable plans to introduce a range of new products, including nutriblenders, hair dryers, domestic air coolers, semi-commercial AC products, kitchen chimneys, induction water heaters, dual induction cooktops, and tower fans.

Manufacturing Facilities

Bhiwadi Facility: A new manufacturing plant in Bhiwadi, Rajasthan, is scheduled for completion in FY2025-26, aimed at increasing production capacity and meeting growing demand.

Technological Platform and Innovation

Proprietary Technologies

Integrated Manufacturing: EPACK Durable's vertically integrated manufacturing model allows for in-house production of critical components, ensuring quality control and cost efficiency.

Scientific Methodologies

R&D Centers: The company operates dedicated R&D centers in Greater Noida, Bhiwadi, and Dehradun, focusing on product development, manufacturing methods, process improvements, and energy efficiency.

Leadership Team

Mr. Bajrang Bothra: Chairman and Whole-time Director.

Mr. Ajay D.D. Singhania: Managing Director and Chief Executive Officer.

Mr. Sanjay Singhania: Non-Executive Director.

Mr. Laxmi Pat Bothra: Non-Executive Director.

Recent Leadership Changes

Ms. Jyoti Verma: Appointed as Company Secretary and Compliance Officer effective January 31, 2025.

Competitor Profile

Market Insights and Dynamics

Consumer Durables Market Growth: The Indian consumer durables market grew at a CAGR of 10.1% from FY2018 to FY2023 and is projected to grow at 13.7% CAGR until FY2028.

Air Conditioner Market: The Indian room air conditioner market has transitioned from a luxury to a necessity, driven by climate change, rising temperatures, and urbanization.

Competitor Analysis

Amber Enterprises: A leading competitor with a significant market share in the OEM and ODM space for air conditioners and other consumer durables.

PG Electroplast: Another key player in the consumer durables manufacturing sector, offering a range of products and services similar to EPACK Durable.

Strategic Collaborations and Partnerships

Symphony Limited: In September 2024, EPACK Durable partnered with Symphony Limited to manufacture air coolers as OEMs.

Hisense Singapore: In October 2024, the company entered into a partnership with Hisense Singapore for the manufacturing of air conditioners and home appliances.

Panasonic Life Solutions India: In October 2024, EPACK Durable established a manufacturing tie-up with Panasonic Life Solutions India for the production of PCBAs and high-tech critical components for room air conditioners.

Operational Insights

Manufacturing Facilities

Dehradun Units: Four manufacturing units located in Dehradun, Uttarakhand.

Bhiwadi Facility: Manufacturing plant in Bhiwadi, Rajasthan.

Sri City Facility: Newly established manufacturing plant in Sri City, Andhra Pradesh.

Operational Efficiency

Vertical Integration: The company's integrated manufacturing approach allows for in-house production of critical components, enhancing operational efficiency and product quality.

Strategic Opportunities and Future Directions

Product Portfolio Expansion: Continued diversification into new product categories to reduce dependency on seasonal products and capture a larger market share.