 "Hisense in talks with contract manufacturer Epack to pick minority stake")
Hisense group, a China-based multinational appliance and electronics manufacturer, is in talks with Epack Durable to acquire a minority stake in a step-down subsidiary of the Original Equipment Manufacturer (OEM).
In a clarification to bourses on Tuesday, Epack Durable Private Limited (EDPL) said it is in discussions with the Chinese manufacturer.
"We would like to inform you that business discussions are currently in the preliminary stage," said Epack Durable.
The Greater Noida-based company further said it will file the requisite disclosure in compliance with applicable laws when required.
According to Epack Durable, it is India's second-largest Original Design Manufacturer (ODM) of room air-conditioners based on the total number of indoor and outdoor units.
The company, which was listed on NSE and BSE earlier this year, is expanding its manufacturing facilities including at its recently started Sri City.
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Established in 2002, Epack Durable manufactures RAC (room air-conditioners) and SHA (small household appliances) with manufacturing facilities at Dehradun, Bhiwadi, Rajasthan and Sri City in Andhra Pradesh.
Its Sri City facility, opened in FY24, has increased manufacturing capacity of Epack by approximately 50 per cent. It manufactures appliances such as water dispensers, induction cook tops, mixer grinder and indoor unit, outdoor unit of air-conditioners.
Besides, it also has a manufacturing facility for plastic moulding, sheet metal, powder coating, copper tubing, heat exchangers and cross-flow fans, according to the latest annual report.
Its revenue from operation in FY24 was at Rs 1,419.6 crore, and RAC and its components contributed 81 per cent of its revenue.