Multibagger Air Conditioner Company Partners with Hisense to Boost Local Manufacturing of ACs and Home Appliances in India for Global Markets – Stock Hits Upper Circuit Today
The company’s shares have delivered an impressive multibagger returns of over 110 per cent in just 6 months.
In a strategic move that promises to revolutionize the home appliances and air conditioners market, global consumer electronics leader Hisense has entered into a manufacturing alliance with EPACK Durable Limited (EDL), a prominent Indian contract manufacturer. This collaboration aligns with Hisense’s commitment to the 'Make in India' initiative, driving local manufacturing and the introduction of technologically advanced and premium-quality products to the Indian market.
Building Manufacturing Capacity in India
As part of the agreement, EPACK Durable will set up a dedicated manufacturing facility in India, leveraging Hisense’s proprietary technology and designs to produce a wide range of air conditioners and home appliances, including washing machines and refrigerators. This local manufacturing initiative aims to establish Hisense as one of the top five brands in India’s home appliances and air conditioners market within the next five years, in line with its global standing.
The new manufacturing facility, located in Sricity, Andhra Pradesh, is expected to begin production by June 2025, with an initial capacity of one million Room Air Conditioners (RACs) by the financial year 2027-28. EPACK will also utilize its existing infrastructure to manufacture critical components and small domestic appliances for Hisense, optimizing asset utilization and ensuring cost efficiencies.
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Technology, Innovation, and Sustainability
Hisense brings its technological expertise and advanced design capabilities to the alliance, while EPACK Durable contributes its years of manufacturing experience and state-of-the-art facilities. Together, the companies will implement eco-friendly manufacturing processes that align with their shared commitment to sustainability. This collaboration is not only expected to enhance operational efficiency but also set new standards in the Indian home appliance sector.
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Steven Li, Managing Director of Hisense India, expressed his excitement about the partnership: “We are thrilled to join forces with EPACK, a company that shares our dedication to excellence and innovation. This partnership will allow us to enhance our manufacturing capabilities and deliver outstanding products that resonate with Indian consumers.”
Pankaj Rana, CEO of Hisense India, highlighted the company’s vision: “Hisense is committed to delivering premium quality and smart products with state-of-the-art design. Through this alliance, we aim to achieve a leadership position in the Indian consumer durables market and expand our presence in global markets.”
Expanding Global Reach
In addition to serving the Indian market, the products manufactured at EPACK’s facilities will also be exported to key international markets. This global outlook is expected to significantly strengthen the positions of both Hisense and EPACK in the home appliances and air conditioners sector worldwide.
For EPACK Durable, this partnership is projected to generate an additional revenue of approximately $1 billion over the next five years. Ajay DD Singhania, Managing Director and CEO of EPACK Durable Limited, said: “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.”
Milestone in the Indian Market
The strategic alliance between Hisense and EPACK Durable marks a significant milestone in India’s manufacturing landscape. Hisense’s investment in local production will not only reduce its reliance on imports but also contribute to India's goal of becoming a global manufacturing hub for electronics and home appliances.
As both companies prepare to lead the market with innovative products, this partnership is expected to have a lasting impact on the Indian consumer durables industry, offering Indian consumers access to cutting-edge, smart home appliances and air conditioners, all manufactured locally.
With Hisense's global revenue exceeding $29 billion in 2023 and its strong international presence, this collaboration further solidifies its position as a key player in the global consumer electronics market. Hisense’s focus on innovation, integrity, and sustainability ensures that this partnership will pave the way for future growth and success in India and beyond.
Share Performance
Today the company's shares hit the upper circuit following this news and currently are trading at around Rs 407.60 per share on the BSE. The current market capitalization of EPACK Durable Limited stands at Rs 3911 crore. Additionally, the company's shares have delivered a multibagger return of over 110 per cent in the past 6 months only.
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Disclaimer: The article is for informational purposes only and not investment advice.