EPACK Durables Eyeing to Become INR 5000 Crore Company in The Next Five Years: CEO & MD Ajay Singhania In the last fiscal year alone, the company achieved a revenue of INR 1,500 crore, with expectations to grow by 45-50 per cent in the current fiscal year

In a rapidly evolving manufacturing landscape, EPACK Durables has positioned itself as a formidable force within India's original equipment manufacturer (OEM) sector. Under the leadership of CEO Ajay DD Singhania, the company has carved a niche in multiple market segments, from cooling solutions to small domestic appliances and is poised for significant expansion. In an exclusive interview, Singhania discusses the company's current operations, future plans and the innovative approaches that have set EPACK apart from its competitors.

EPACK Durables operates across three main segments. "We are an OEM ODO, which means we are not a brand but we manufacture for all the brands in the country," says Singhania. The company's primary segment is cooling solutions, specifically room air conditioners and air coolers. This segment accounts for a significant portion of the company's revenue. "As much as 80 per cent of our revenue currently comes from the cooling segment," he notes.

The second segment involves small domestic appliances, where EPACK manufactures products such as induction cooktops, mixer grinders and water dispensers. The company is also expanding into new product categories like air fryers, showcasing its agility in adapting to market demands.

The third and equally crucial segment is components. EPACK not only assembles products but also manufactures nearly all the components in-house. "Especially for room air conditioners, we make to the extent of almost 75-80 per cent components in-house," disclosed Singhania. These components include essential parts like motors, electronic controllers and heat exchangers, which are also sold to other customers, adding another revenue stream for the company.

In the context of global supply chains, EPACK Durables strategically imports certain critical raw materials. "Any manufacturing in India or other parts of the world is not possible without importing anything from China or other countries," he said. The key imports include copper, aluminium and compressors, components that are vital for the company's manufacturing processes. Despite the necessity of these imports, the company's focus on in-house production and component manufacturing helps mitigate some supply chain risks and enhances its value proposition.

New horizons

EPACK Durables is not resting on its laurels. The company is making a significant leap into the larger appliances segment. "We already made the announcements that we are going to start making larger appliances that are fully automatic top-down machines, by mid of October or end of September," Singhania reveals. This move aligns with the company's strategy to diversify its product offerings and tap into new revenue streams. The machines will be designed, developed and manufactured entirely by EPACK, further solidifying its reputation as a reliable OEM partner. This expansion is expected to contribute to the company's ambitious growth targets.

EPACK Durables has witnessed robust growth in recent years, outperforming many of its competitors. "We have been growing at a CAGR (compound annual growth rate) of almost 40 per cent plus in the last four years," he revealed. In the last fiscal year alone, the company achieved a revenue of INR 1,500 crore, with expectations to grow by 45-50 per cent in the current fiscal year.

This impressive growth is underpinned by the company's strong market share in the OEM sector. "We have a market share of almost 25 per cent of all the OEM products manufactured in India," Singhania pointed out, highlighting EPACK's dominance and its position as the fastest-growing OEM in the country.

"Our strength is design," says Singhania, emphasising the company's focus on developing products that meet the specific needs of its clients. EPACK's ability to customise products for different brands, ensuring they meet high standards of quality and performance, has earned it long-term contracts with top brands in the market.

Singhania also underscores the responsibility that comes with being a trusted OEM partner. "We give a large design strength to the 27 R&D engineers who work around the clock to develop deep projects. If a Daikin or a Voltas or a Blue Star is getting manufactured in our company and if the product has a design flaw, that comes with a lot of responsibility. So we need to really not only design the product perfectly, but also manufacture it in a way that gives consistent performance throughout because it goes directly to the end customer," he remarks, highlighting the meticulous care taken in both design and manufacturing processes.

Embracing the digital transformation

In an era where digital transformation is crucial, EPACK Durables is not lagging behind. The company has been integrating artificial intelligence (AI) into its manufacturing processes over the last few years. "Today if I say, for every product that we have manufactured, we have a cloud on our portal which means let's say you have an AC installed on a particular brand at your home and if you just call us to tell this is the serial number, this is the kind of problem you are facing, we can immediately trace back to its origin. We will know how it was manufactured in our factory, what was the serial number, what was the date of manufacturing. Similarly, when we are manufacturing we are using a lot of AI tools to trace, to track the consistency in the product. So all this is now inbuilt into the manufacturing system," says Singhania. This digital infrastructure allows the company to trace any product back to its origin, ensuring consistent quality and enabling quick resolution of any issues that may arise.

Looking ahead, EPACK Durables has set an ambitious target to grow from a INR 1,500 crore company to a INR 5,000 crore enterprise within the next five years. To achieve this, the company plans to expand its product portfolio, particularly in the larger appliances segment, while continuing to innovate in its core areas of cooling solutions and small domestic appliances.