EPACK Durable receives equity investment of INR 1,600 Mn to fund its expansion

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October 7, 2021, India: EPACK Durable Private Limited and funds advised by ICICI Venture, today announced a fresh round of capital infusion of INR 1,600 mn. This round of funding is driven by India Advantage Fund Series 4 and Dynamic India US S4 I, funds advised by ICICI Venture.

EPACK Durable currently has an installed capacity of over 1 mn RAC and 1 mn SHA units and the infusion of fresh equity capital will help Epack to drive further expansion in capacity and focus on backward integration with addition of capacity for multiple components. The Company targets to increase its RAC capacity to 3.0 mn units per annum by 2025, to capture the growing demand of RACs in India and cater to the needs of export markets as well.

EPACK is the second largest ODM for RACs in India. The Company manufactures the complete range of room air conditioners including Windows ACs and Split ACs, with latest technology including fixed speed and inverters. The company also manufactures SHA including induction cooktop, mixer grinders and water dispensers etc.  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, EPACK intends to contribute to the Aatmanirbhar Bharat initiative and Make in India agenda of Government of India. The Company is already in the process of setting up a greenfield manufacturing facility near Bhiwadi in Rajasthan which is expected to be commissioned in Q3 of the current financial year. The company has also announced its plan for setting up a greenfield manufacturing plant in South India which is expected to be operational by Q3 of 2022.

BL Bothra, Chairman, EPACK Durable Private Limited, said, “We are very happy with the formidable presence EPACK has built in the RAC & SHA ODM space. We are very excited to strengthen our relationship with existing & new customers and serve them with wider range of products. We are very glad to partner with ICICI Venture which brings in significant capabilities to help us build much stronger business”.

Sanjay Singhania, Promoter Director, EPACK Durable Private Limited, elaborating on this landmark said, “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 next 4-5 years”.

Puneet Nanda, MD & CEO, ICICI Venture Funds Management Company Limited, said “ICICI Venture has consistently backed Indian entrepreneurs and supported the growth of manufacturing industries in India. The recent investment in EPACK Durable is in line with the same philosophy and directly contributes to the Government of India’s vision of an Atmanirbhar Bharat. Over the past few years, EPACK has established itself as a prominent manufacturer of room air conditioners and other home appliances products, with investments in research and quality which allow them to cater to their customers’ diverse needs. We are excited to partner with the promoters and management team at EPACK Durable and look forward to working with them in their growth journey.”

Established in Greater Noida in 2002, EPACK Durable manufactures RAC and SHA with manufacturing facility at Dehradun. EPACK Durable has emerged as one of the credible ODM operator in this space. With an experienced management and operations team, EPACK has current manufacturing capacity of 1 mn RACs and 1 mn SHAs.

ICICI Venture is India’s oldest, largest and most diversified alternative assets manager with a cumulative AUM/AUA since inception of about USD 5 billion. It is currently present across 4 verticals: Private Equity, Real Estate, Special Situations and Infrastructure (through Resurgent in a strategic partnership with Tata Power Company). ICICI Venture is a wholly owned subsidiary of ICICI Bank.



Categories: Venture Capital

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