EPACK Durable hits 5% upper limit on manufacturing pact with Hisense India

EPACK Durable locked in 5% upper limit: EPACK Durable shares were in demand on Tuesday, October 22, 2024 as the scrip was locked in the 5 per cent upper circuit at Rs 407.60 per share. 

The rise in EPACK Durable share price came after the company announced that it has entered into a strategic manufacturing alliance with Hisense India to set up an advanced manufacturing facility in India to produce Hisense range of Air conditioners and Home Appliances using Hisense’s proprietary technology & designs. 

Set up in 1969, Hisense has established itself as a global leader in home appliances and consumer electronics, operating in over 160 countries. In 2023, the multinational corporation reported revenues of approximately $29 billion, with more than 40 per cent coming from international markets. Hisense specialises in home entertainment, home appliances, and IT solutions, stressing upon innovation, integrity, and sustainability.

 

As part of this agreement, EPACK Durable will invest in dedicated production lines for a variety of products, including air conditioners, washing machines, refrigerators, and other small domestic appliances. Key components for residential air conditioning and small appliances will be produced using EPACK's existing infrastructure, optimising asset utilisation.

Leveraging its extensive experience and advanced manufacturing techniques, EPACK aims to streamline production for Hisense while ensuring the highest quality standards. In turn, Hisense will contribute its technological expertise and premium design capabilities.

Ajay DD Singhania, managing director & CEO of EPACK Durable Limited: “This collaboration with Hisense opens new opportunities for growth in both domestic and international markets. With our combined strengths, we are poised to redefine excellence in the home appliance industry.” 

“The local manufacturing of its products by Hisense, is not only a step towards its commitment to enhancing manufacturing capabilities through Make in India, but also a reflection of its vision to introduce Hisense’s latest technologically superior, smart and premium-quality home appliances to India market, and thereby help establish Hisense as a top 5 Brands in Air-conditioner and home appliances in India within next 5 years, in line with its global standing.” EPACK Durable said in a statement.

Additionally, the new manufacturing facility, set to be built in Sricity, Andhra Pradesh, will have an initial capacity of 1 million RACs by the financial year 2027-28, with production expected to start in June 2025.

The initiative not only targets the Indian market but also positions Hisense to explore export opportunities in strategic international markets, thereby strengthening the global presence of both brands.

Furthermore, the strategic cooperation is projected to generate approximately $1 billion in additional revenue for EPACK Durable and its subsidiary over the next five years.

The market capitalisation of EPACK Durable is Rs 3,911.64 crore, according to BSE. The company falls under the BSE SmallCap category. 

At 1:21 PM, EPACK Durable share continued to remain locked in the 5 per cent upper circuit at Rs 407.60. In comparison, BSE Sensex was trading 0.62 per cent lower at 80,644.62 levels.