Meet the entrepreneur who manufactures ACs for Samsung, LG, and other brands
Noida-based EPACK Durables is an original equipment and original design manufacturer for a number of household brands such as Samsung, LG, Voltas, Lloyd and Bosch.
Nearly two decades ago, Ajay Singhania, who came from a business family, was looking to make a mark. He began assembling imported air conditioners at his family’s Noida facility for many international brands.
In many ways, this was taking forward a legacy established by his father, late Deendayal Singhania, who, along with his friend, late Pooran Bothra, had established EPS Packaging, which currently houses EPACK Durables Private Limited (EDPL).
When Ajay went abroad to study, he learned how businesses were operated elsewhere. He applied this knowledge to his family business. Thus began the journey of .
In 2012, EPACK became an original equipment manufactuer (OEM) and an original design manufacturer (ODM) for a number of household brands such as Samsung, LG, Voltas, Lloyd and Bosch.
The company has come a long way since then. “Today, we are one of the leading companies in India in original design and equipment manufacturing for multinational brands, seizing 22% market share,” Ajay tells SMBStory.
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EPACK Durables operates under its parent company EPACK Group, which was established in 1999.
“In the last two decades, we have come a long way from being assemblers to manufacturers and now being the second largest ODM of room air conditioners in the country,” says Ajay.
Growth of EPACK Durables
Apart from ACs, EACK Durables today manufactures kitchen appliances such as induction cooktops, mixer grinders, and water dispensers at two manufacturing facilities in Dehradun and Bhiwadi.
EPACK is also setting up another manufacturing facility in Sri City Andhra Pradesh and is looking to boost its production to 2.4 million units per annum overall.
“The journey has been full of learning, we have seen markets evolve, demand change and keep up even when the market conditions were not right,” says Ajay.
The consumer durables industry has seen positive growth in the last few years, partly due to a boost in disposable income. One of the main reasons for this industry’s growth is the growing sentiment among people to purchase more 'Made in India' products, says Ajay.
“We manufacture for many homegrown companies as well... The government is also showing support towards boosting local manufacturing and the future ahead looks bright,” he says, adding that this is boosted further by several Multi National Cooperations (MNCs) looking to shift base to India.
According to India Brand Equity Foundation, the Indian appliances and consumer electronics industry stood at $9.84 billion in 2021, and it is expected to reach $21.18 billion by 2025. The air conditioners market is expected to grow to 165 lakh units by 2025, from 65 lakh units in 2019.
Last year, EPACK raised $24 million from ICICI Venture in its first round of investment. In September this year, the company announced a second round of capital infusion of $40 million, led by Affirma Capital, for capacity expansion and backward integration.
Challenges
While there is significant demand for local products, there are obstacles in manufacturing them.
India still depends on other countries to procure raw materials for manufacturing ACs. Stringent policies, such as zero-COVID in China, have impacted consumer durables companies, including EPACK. About 25-75% of components for white goods come from China; 75% of the components of air conditioners come from China, according to a report by Business Standard.
What’s next for EPACK?
The company is expanding production capacities at its existing facilities. It is planning brownfield expansion at the Bhiwadi plant, at an investment of Rs 85 crore.
The company is also working on becoming carbon neutral.
EPACK's revenue grew from Rs 800 crore in FY20 to Rs 1,000 crore in FY22. It is aiming for a revenue of Rs 1,700 crore in FY23 and Rs 4,800 crore by FY26.
(Disclaimer: The story has been updated to change the company's name and details on manufacturing unit's location.)
Edited by Akanksha Sarma
