EPACK Durable raises $40 mn in second round of funding led by Affirma Capital

• EPACK Durable is an outsourced design manufacturer of room air conditioners.
  
• The company proposes to invest over $40 million in brownfield and greenfield expansion.
  
• It aims to increase its capacity to 3.6 million RAC units by next year.
  

EPACK Durable (EDPL) today said that it raised $40 million — in a second round of funding led by Affirma Capital. Last year, the company raised $24 million from ICICI Ventures in its first round of investment.

EDPL is an outsourced design manufacturer for room air conditioners or RACs in India’. It manufactures window ACs, split ACs and other small home appliances or SHAs.

The company has an installed capacity to produce over 2.4 million RACs and 2 million SHAs per annum. The infusion of fresh equity capital will help EDPL drive capacity expansion; and will also help focus on backward integration for multiple components.

“We are very glad to partner with Affirma Capital, which brings onboard significant capabilities to help us build a much stronger business,” Ajay Singhania, MD & CEO of EDPL, said.

The RAC penetration in India is among the lowest in the world at 7-8% of households, B L Bothra, chairman of EDPL revealed.

“Over the last two decades, EDPL has been building manufacturing capabilities to manufacture room air conditioners and small home appliances. We have built strong business relationships with all key brands,” Bothra said.

EPDL is setting up a greenfield manufacturing facility in Sri City, Andhra Pradesh, which is expected to be commissioned next year.

“India has been a core investment destination for us for over 20 years where we have backed leading mid-market enterprises to become national and regional champions. As penetration levels of air conditioners and small home appliances increase, and the industry gets more organized,” Udai Dhawan, founding partner, and India head of Affirma Capital said.

The company has also announced its plan for brownfield expansion of its facility at Bhiwadi, Rajasthan, which will be commissioned by the end of the current financial year. It targets to increase RAC capacity to 3.6 million units per annum by next year.

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