EPACK Durable, a leading outsourced design manufacturer of room air conditioners, on Thursday said it has raised USD 40 million (around Rs 318 crore) in a second round of funding led by Affirma Capital.
The company proposes to invest over USD 40 million in brownfield and greenfield expansion, and increase its production capacity to 3.6 million room air conditioner units by next year, a company statement said.
It plans to leverage the Production-Linked Incentive (PLI) Scheme announced by the government for the sector, it added. EPACK Durable had raised USD 24 million from ICICI Venture in its first round of investment.
Its current installed capacity is over 2.4 million room air conditioner units and 2 million SHA units (small household appliances). EPACK Durable currently has integrated manufacturing facilities in Dehradun and Bhiwadi, Rajasthan where it manufactures room air conditioners, components, and small household Appliances for leading Indian and MNC brands in India as an original design manufacturer (ODM).
"We are very glad to partner with Affirma Capital, which brings onboard significant capabilities to help us build a much stronger business," EPACK Durable MD & CEO Ajay Singhania said. EPACK Durable Chairman BL Bothra said room air conditioner penetration in India is among the lowest in the world at 7-8 per cent of households.
"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," he said.
Established in Greater Noida in 2002, EPACK Durable manufactures room air conditioners and small household appliances with manufacturing facilities at Dehradun and Bhiwadi, Rajasthan.
Affirma Capital is a private equity firm owned and operated by the former senior leadership of Standard Chartered Private Equity. It currently manages approximately USD 3.1 billion in assets for leading global limited partners and sovereign wealth funds.
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