September 15, 2022 – Mumbai, India: EPACK Durable Private Limited (EDPL) today announced a 2nd round of capital infusion of USD 40 million led by Affirma Capital. It is worth noting that last year the company raised an amount of USD 24 million from ICICI Venture in its 1st round of investment.
EDPL currently has an installed capacity of over 2.4 million RAC and 2 million SHA units, and the infusion of fresh equity capital will help EDPL drive further expansion in capacity and focus on backward integration for multiple components. 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 is one of the largest ODMs for RACs in India. The company manufactures a complete range of room air conditioners including Window ACs and Split ACs with the 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 the Make in India agenda of the Government of India. The company is already 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.
Ajay Singhania, MD & CEO – of EDPL, said, “We are very happy with the formidable presence we have built in the RAC and SHA ODM space. We are very excited to strengthen our relationship with existing and new customers and serve them with a wider range of products. We are happy to partner with Affirma Capital, which brings onboard significant capabilities to help us build a much stronger business.”
BL Bothra, Chairman – EDPL, elaborating on this landmark, said, “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.”
Udai Dhawan, Founding Partner, and India Head of Affirma Capital said, “India has been a core investment destination for us for over 20 years where we have backed leading mid-market enterprises to become national and regional champions. As penetration levels of air conditioners and small home appliances increase, and the industry gets more organized, EDPL is well positioned for significant growth. We look forward to helping the company’s founders in this journey.”
Vibhav Parikh, Executive Director of Affirma Capital, said, “Our investment in EDPL is in line with our philosophy of supporting manufacturing businesses that cater to the Government of India’s strong push for indigenization and directly contribute to its vision of an Aatmanirbhar Bharat. 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.”