EPACK Durable Private Limited (EDPL), an outsourced design manufacturer (ODM) of air conditioners has raised $40 million in the second round of capital infusion led by Affirma Capital.
The fresh equity funding will help EDPL in expanding its capacity and concentrate on backward integration for various components. The company expects to increase its room air conditioners (RAC) capacity to 3.6 million units annually by next year. EDPL currently has an installed capacity of over 2.4 million RAC and two million small house appliances (SHA) units, said the release.
“We are very happy with the formidable presence we have built in the RAC and SHA ODM space. We look forward to serving our existing and new customers with a wider range of products,” said Ajay Singhania, MD, and CEO of EDPL.
The company manufactures a complete range of room air conditioners, including window ACs and split ACs with lathe test technology, including fixed speed and inverters. It also manufactures SHAs, including induction cooktops, mixer grinders, and water dispensers.
According to the company, it is in the process of setting up a greenfield manufacturing facility in Sri City, Andhra Pradesh, which is expected to be commissioned next year. 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.
“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. With the industry getting more organised and an increase in the penetration levels of air conditioners and small home appliances, EDPL is well positioned for significant growth,” saidUdai Dhawan, Founding Partner and India Head of Affirma Capital.