Epack Durable Share Price Gains Over 3% After Hisense Group Eyes 26% Stake in Subsidiary

According to a recent report, Hisense Group, China’s largest television producer and a major appliance manufacturer, is reportedly in talks to acquire up to a 26% equity stake in Epack Durable’s newly formed subsidiary, Epack Manufacturing Technologies.

On December 26, 2024, Epack Durable share price traded 2.84% higher at ₹492 on the Bombay Stock Exchange (BSE) at 10:50 AM (IST). According to BSE data, the stock recorded a total traded volume of 1.04 lakh shares, with a turnover of ₹5.19 crore.

Large-Scale Production Facility in Andhra Pradesh

Epack Durable is setting up a state-of-the-art production facility in Sri City, Andhra Pradesh, to manufacture a range of appliances under the Hisense brand. The facility will produce air conditioners, refrigerators, washing machines, and small appliances. Epack Manufacturing Technologies subsidiary will manage operations at the new facility.

Ajay DD Singhania, Managing Director of Epack Durable, confirmed that discussions with Hisense are underway regarding the acquisition of up to 26% equity in Epack Manufacturing Technologies. Singhania also highlighted Hisense’s ambitious plans for India, which include a focus on exports and the development of a component vendor park.

As part of this initiative, Epack is seeking 80-100 acres of land in Sri City for the vendor park, which aims to support the production ecosystem.

Revenue Target of $1 Billion

Epack Durable anticipates a substantial boost in revenue from the partnership with Hisense. Singhania projected that the collaboration could generate nearly $1 billion in additional revenue over the next five years.

Alignment with the Indian Government’s Policy

Hisense’s move aligns with the Indian government’s policy encouraging foreign companies, particularly Chinese firms, to partner with local businesses through equity alliances. Other Chinese companies, such as MG Motor, Vivo, and Haier, have already formed similar partnerships to strengthen their presence in India.

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