EPACK Durable and Hisense Partners to Manufacture ACs and Appliances in India

EPACK Durable Limited (EDL) announced a significant partnership with Hisense, a global leader in consumer electronics and home appliances, marking a strategic alliance. 

This partnership aims to strengthen both companies’ presence in the Indian and international markets. Under this agreement, EPACK Durable will set up an advanced, dedicated manufacturing facility in India to produce Hisense’s range of air conditioners and home appliances. 

The manufacturing will utilise Hisense’s proprietary technology and designs, aligning with India’s “Make in India” initiative. This collaboration underscores Hisense’s commitment to enhance local manufacturing capabilities while bringing its latest, technologically advanced, premium-quality products to Indian consumers.

Investment in Technology, Design, and Production Capacity 

EPACK Durable will invest in specialised production lines for air conditioners and home appliances, including washing machines, refrigerators, and small domestic appliances. Many critical components, including RAC units and small domestic appliances, will be manufactured using EPACK’s existing infrastructure, optimising the company’s current assets. Leveraging its years of manufacturing expertise, EPACK will streamline production for Hisense, ensuring top-notch quality and efficiency. 

The company stated that Hisense, in turn, will bring its technological prowess and premium design expertise to the table, further elevating the production standards. A key part of this investment will be a new manufacturing facility in Sricity, Andhra Pradesh, with an initial capacity of 1 million RACs by FY 2027-28. Production is slated to begin by June 2025. Both companies are dedicated to sustainable practices, with plans to implement eco-friendly processes throughout the manufacturing cycle.

Expanding Global Reach 

The products manufactured at EPACK’s facilities will not only cater to the Indian market but will also explore export opportunities in strategic international markets. This partnership is expected to strengthen both Hisense’s and EPACK’s positions in the global home appliance and air conditioner sectors. The collaboration is projected to generate approximately $1 billion in additional revenue for EPACK Durable and its subsidiaries over the next five years, positioning both companies as key players in the home appliance industry in India and beyond.

Commenting on this partnership, the Managing Director of Hisense India, Steven Li, said, “We are very thrilled to join forces with EPACK, a company that shares our dedication to excellence and innovation. This partnership will not only enhance our manufacturing capabilities but also allow us to focus on what we do best: creating outstanding products that resonate with Indian consumers.”

The Managing Director and CEO of EPACK Durable Limited, Mr Ajay DD Singhania, stated, “This collaboration with Hisense opens new opportunities for growth in both domestic and international markets. With our combined strengths, we are poised to redefine excellence in the home appliance industry.”

On October 22, 2024, EPACK Durable share price opened at ₹408.55, touching the day’s high at ₹408.55, as of 9:37 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.