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EPACK, outsourced design manufacturer of ACs, to set up ₹200-crore unit in Sri City of Andhra Pradesh


The company will invest ₹500 crore and create more than 3,000 jobs in five years, says its MD and CEO Ajay D.D. Singhania

The company will invest ₹500 crore and create more than 3,000 jobs in five years, says its MD and CEO Ajay D.D. Singhania

The EPACK Durable of EPACK Group, a leading Original Design Manufacturer (ODM) of room air-conditioners, will set up an integrated manufacturing facility in the Sri City of Andhra Pradesh by investing about ₹500 crore in five years. The facility envisages creating more than 3,000 jobs in a phased manner in five years.

The Noida-headquartered company is planning to invest ₹200 crore in the first phase and set up a manufacturing plant for air-conditioners and small home appliances with a production capacity of 6 lakh units by mid-2023.

In an exclusive interaction with The Hindu, EPACK Durable Private Limited managing director and chief executive officer Ajay D.D. Singhania said that the company which serves the top AC brands in the country has two manufacturing units —Dehradun in Uttar Pradesh and Bhiwadi in Rajasthan—at present, with a production capacity of 1.2 million units per annum.


“With four major ports in the vicinity, the Sri City offers good opportunities for exports. Andhra Pradesh is a investor-friendly State and Sri City has a good ecosystem for manufacturing appliances. ”Ajay D.D. SinghaniaEPACK Durable MD and CEO

“Our third manufacturing facility will be set up in 25 acres in the Sri City of Andhra Pradesh. In the first year, we are planning to produce six lakh units and the production capacity will be enhanced in the next three years. About 1,000 jobs will be created in the first year. We expect the construction and trial production to be over by mid-2023 and the full-fledged production will begin by October 2023,” said Mr. Singhania.

Along with the plant in the Sri City, the company is also expanding the capacities of the existing facilities. “Once the Sri City plant is ready, our capacity will increase to 2.4 million units per annum,” said Mr. Singhania.

Asked why the EPACK chose Andhra Pradesh, Mr. Singhania said, “The South India market consumes 25% to 30% of the appliances manufactured, while the manufacturing base for these products is in North India, which means involvement of huge logistics. With four major ports in the vicinity, the Sri City offers good opportunities for exports. Also, Andhra Pradesh is a investor-friendly State and Sri City has a good ecosystem for manufacturing appliances,” explained Mr. Singhania.

Mr. Singhania said that the company had secured 25 acres in the Sri City and the construction works were under way. “We will approach the officials concerned very soon and discuss the investment proposals. In the next five years, the EPACK will invest up to ₹500 crore in Sri City and create more than 3,000 jobs,” said Mr. Singhania.

He said that the policies of the Central government which identified AC manufacturing as a ‘Sunrise Sector’ and prohibited the import of cheaper products had helped the industry.

Giving details about the EPACK facility proposed in the Sri City, Mr. Singhania said, “As an ODM, we provide everything from design to a labelled product to our customers. We serve about six of the top 10 AC brands in the country. At our integrated facility in the Sri City, all parts—from condensers to plastics—will be manufactured and assembled as per the requirement of our clients.”

The EPACK has always been at the forefront of research and development. It brings out the best of technology with environment-friendly products, he said.

Investment and funds

The EPACK has invested about ₹240 crore last year and ₹100 crore would be invested in existing plants in the current fiscal, he said, adding that the company had raised funds from private equity investors ICICI Ventures and Affirma Capital recently.

Apart from ACs which generate 80% of the EPACK’s revenue, small home appliances such as induction cooktops and mixer grinders will also be manufactured at the unit proposed in the Sri City, he added.


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