About Company

• EPACK Durables (EPACK) was incorporated on April 20, 2019. EPACK is the second largest room air conditioner (RAC) original design manufacturer (“ODM”) in India in terms of number of units (indoor units + outdoor units) manufactured in Fiscal 2023 through the ODM route. After initially starting as OEM for RAC brands the company has evolved into an ODM partner for RACs for customers. EPACK also started manufacturing various components for RAC’s as a value addition to its offering. Further the company has strategically diversified in the small domestic appliances (“SDA”) market, particularly considering the seasonality of the demand for RACs. 
• EPACK designs and manufactures complete RACs including window air conditioners, indoor units, and outdoor units for Split ACs with specifications ranging from 0.75 ton to 2 ton, across energy ratings and types of refrigerants. In SDAs the company currently design and manufacture induction cooktops, mixer-grinders, and water dispensers. 
• EPACK has the highest amount of backward integration for RACs at a single location, that has been grown within the same company organically in India. 
• The company has vertically integrated manufacturing facilities at 3 locations at Dehradun- Uttarakhand, Bhiwadi-Rajasthan and Sri City- Andhra Pradesh. Further the company plans to set up two new manufacturing facilities at (i) Salarpur Industrial Area, Bhiwadi, Rajasthan and (ii) Sri City DTZ, Andhra Pradesh. 
• EPACK has 1 registered patent in India for air conditioner with air sterilisation and has filed for the registration of 2 patents in India, in respect of (i) collar with optimized flared section for joining tubes in coil of heat exchanger, and (ii) air conditioning system having heat exchanger. Further the company has 10 registered designs, including for window air conditioner, mixer, blender, and water dispenser. 
• EPACK’s customers include 4 of the top 6 RAC brands in the Indian market (in terms of RAC sales in Fiscal 2023 in India). Further, the company has long-standing relationships with several well-known Indian and global customers. The average relationship with RAC customers is 8.7 years and with SDA Customers is 6.3 years. 

• EPACK is one of the initial Indian RAC ODM companies to manufacture 5 mm copper tubing for the heat exchangers. Additionally, the company is one of the initial Indian RAC ODMs to design and manufacture WACs (both fixed speed and inverter models) with R32 refrigerant. EPACK has a dedicated R&D team comprising of 57 full time employees, as on September 30, 2023.

Strengths

Competitive Strength 

• Long-standing relationships with established customers, with potential to expand the customer base;
• Among the key manufacturers in the fast-growing RAC and SDA manufacturing industries;
• Advanced vertically integrated manufacturing operations with product portfolio aimed at capturing the full spectrum of the RAC and SDA value chain;
• Robust product development and design optimisation capabilities; 
• Experienced Promoters supported by senior management team with proven track record of performance.

Business Strategies 

• Expanding the existing product portfolio, including the RAC and SDA components product portfolio;
• Continue to drive operational efficiencies through expansion of the integrated manufacturing capabilities and continued investment in the R&D infrastructure; 
• Increase wallet share with existing customers and continued focus to expand the customer base; 
• Further explore initiatives to strengthen control over the supply chain.

Company Promoters

Company Financials

EPACK Durable Limited's revenue increased by 66.09% and profit after tax (PAT) rose by 83.39% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

The company proposes to utilize the net Proceeds from the Fresh Issue towards funding the following objects:

1. Funding capital expenditure for the expansion/setting up of manufacturing facilities;
2. Repayment and/or prepayment, in part or in full, of certain outstanding loans of the company;
3. General corporate purposes.