Epack Durable Expects Hisense Deal To Bring In $1 Billion Revenue By March 2028
Epack Durable would invest Rs 250 crore in the first phase of the facility to be set up under the deal.
Home appliances maker Epack Durable Ltd. is poised to achieve a $1 billion topline over the next four years buoyed by its recent deal with Hisense India, according to the company’s Chief Executive Officer Ajay Singhania.
Epack Durable Ltd., on Oct. 21, said it had signed a deal with Hisense India to manufacture air conditioners and other appliances, including washing machines and refrigerators, at a dedicated manufacturing facility in Sri City, Andhra Pradesh.
Talking about the deal, Singhania told NDTV Profit Epack Durable would invest Rs 250 crore in the first phase of the agreement to set up the facility.
“The first set of products will come in by June 2025. We will be generating a topline of at least $1 billion over the next three to four years,” he said.
The CEO noted that this partnership would bring opportunities for the company from both India and outside.
“The products manufactured will be both for India and outside India. Hisense is planning to launch its products in the Indian market in a big way,” he said.
“Roughly, the revenue in FY27-28 for a million air conditioners and half a million washing machines will be Rs 2,500 crore,” he noted.
The Hisense deal will not impact Epack Durable's margins, but the company is looking to gain on other fronts, the top executive added.
“We will look at gaining more from the deal in terms of the designs and sourcing capabilities… That is something more important for us because it will help us rationalise our current investments,” Singhania said.
He further noted that the company will not need to raise capital for the initial investment.
“The Rs 250 crore investment is the Phase-1 of the capex, and going forward as we ramp up capacity looking at the global pull, more investments will definitely be required,” the CEO revealed.
Shares of Epack Durable Ltd. hit the 5% upper circuit on Tuesday, at Rs 408.55 apiece on the NSE. In contrast, the benchmark Nifty 50 was down 0.81% at around 1:30 pm.
