EPack Durable has formed a manufacturing partnership with Panasonic

At the turn of the century, a group of businessmen established EPACK Group, combining their most advanced technological and human resources to construct an EPS (Expanded Polystyrene Packaging) manufacturing facility in Greater Noida, outside of Delhi. Years of juggling work and family responsibilities culminated in this initiative, which was an enormous success. After that, we kept up our spirit of entrepreneurship and eventually branched out into the verticals of consumer durables and pre-engineered building manufacturing. In the fiscal year 2024-2025, the EPACK Group intends to invest close to Rs 450 crores in the construction of new manufacturing facilities across the country. 

EPACK partnership with Panasonic:

A production agreement for the RAC Controller and other necessary components (which are covered by the PLI scheme) has been reached by Panasonic India and EPACK Durable Limited. EPACK Durable Limited enters the EMS market for controllers in addition to other RAC parts for Panasonic India to begin producing RACs. The leading player in the Indian air conditioning market, EPACK Durable Limited (“EPACK”), is set to transform the country’s manufacturing scene with a partnership with Panasonic Life Solutions India Private Limited (“Panasonic”) for the production of its room air conditioner PCB controllers as EMS and other essential parts, such as heat exchangers, cross-flow fans, propeller fans, sheet metal parts, injection-molded and copper parts, etc. for Panasonic’s room air conditioners (RACs).

Key points of the agreement between EPACK and Panasonic India:

Panasonic’s supply agreement establishes EPACK as a leading provider of Electronic Manufacturing Services (“EMS”). EPACK is now able to supply state-of-the-art PCBA controllers and essential parts for room air conditioners (RACs) thanks to this calculated move. This represents a significant turning point for EPACK, which went from making PCBA controllers for in-house use to becoming a vital supplier to the giant of the industry, Panasonic. This EMS opportunity creates fresh opportunities for expansion and industry leadership.

The hub of this business will be EPACK’s state-of-the-art manufacturing facilities in Bhiwadi, Rajasthan, and Sricity, Andhra Pradesh. By utilizing EPACK’s well-established expertise, these facilities will be able to maximize capacity utilization and establish new benchmarks for manufacturing excellence. The Government of India’s production-linked incentive program will pay for the components that EPACK will produce for Panasonic.

The stock of Epack Durable Ltd. is down over 4% today:

The stock price of Epack Durable Ltd is currently trading at Rs. 402.00 per share, nearly 5% lower than its low of Rs. 395.00 per share today. The stock price of Epack Durable Ltd. is at its highest traded level of Rs. 429.80 per share, very close to the 52-week high of Rs. 434.10 for each share.

Conclusion: This strategic partnership that Panasonic announced is a game-changer for EPACK. In India, the demand for inverter-based, energy-efficient room air conditioners is on the rise, necessitating the use of premium PCBA controllers. Our calculated investment in PCBA assembly is paving the way for future expansion in addition to satisfying present needs.

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.