EPACK Durable raises $40M in a round led by Affirma Capital
Durable Private Limited (EDPL), an Outsourced Design Manufacturers (ODM) of Room Air Conditioners (RAC), has announced a second round of capital infusion of $40 million led by Affirma Capital.
Last year, the company raised an amount of $24 million from ICICI Venture in its first round of investment.
Udai Dhawan, Founding Partner and India Head of Affirma Capital, said,
“As penetration levels of air conditioners and small home appliances increase, and the industry gets more organized, EDPL is well positioned for significant growth, and we look forward to helping the company’s founders in this journey.”
Currently, EDPL claims to have an installed capacity of over 2.4 million RAC and two million Small Household Appliances (SHA) units. The infusion of fresh capital will help EDPL drive further expansion in capacity and focus on backward integration for multiple components. As per the official release, the company targets to increase its RAC capacity to 3.6 million units per annum by next year to capture the growing demand for RACs in India and cater to the needs of export markets as well.
EDPL manufactures the complete range of room air conditioners including Window ACs and Split ACs with latest technology including fixed speed and inverters. The company also manufactures SHAs including induction cooktops, mixer grinders, and water dispensers. The company supplies its products to key Indian and MNC brands. With plans to add new capacity at existing and new locations and localization of components, EDPL intends to contribute to the Atma Nirbhar Bharat initiative and Make in India agenda of the Government of India.
Ajay Singhania, MD and CEO, EDPL, added,
“We are very glad to partner with Affirma Capital, which brings onboard significant capabilities to help us build a much stronger business.”
The company is already in the process of setting up a greenfield manufacturing facility in Sri City, Andhra Pradesh, which is expected to be commissioned next year. The company has also announced its plan for brownfield expansion of its facility at Bhiwadi, Rajasthan, which will be commissioned by the end of the current financial year.
“RAC penetration in India is among the lowest in the world at 7-8% of households. Over the last two decades, EDPL 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 funding from Affirma Capital will help us deepen our manufacturing and R&D capabilities and gain more market share over the next 4-5 years,” stated BL Bothra, Chairman, EDPL.
According to Vibhav Parikh, Executive Director of Affirma Capital, “Our belief in EDPL is reinforced by secular growth prospects, its best-in-class manufacturing and quality control infrastructure, diversified and blue-chip customer base, and its ethos. We are excited to partner with the promoters and management team at EDPL and look forward to collaborating with them in their growth journey.”
(This story has been updated to change the headline)