Synopsis

EPACK Durable and its subsidiary will invest over Rs 1,000 crore in Andhra Pradesh to boost manufacturing of air conditioners, washing machines, and other appliances. The state government has approved a special incentive package, including land allotment and capital subsidies, to support this expansion. This move is expected to create approximately 1,600 jobs and significantly enhance the company's production capabilities.

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EPACK Durable receives Andhra Pradesh government approval for ₹1,084.31 crore combined investment under Electronics Manufacturing Policy 4.0

EPACK Durable Ltd on Wednesday said it has received approval from the Andhra Pradesh government for a tailor-made incentive package under the Mega Category of the state's Electronics Manufacturing Policy (4.0) for a combined proposed investment of Rs 1,084.31 crore by the company and its wholly owned subsidiary, EPACK Manufacturing Technologies Pvt Ltd (EMTPL).

The approved investment comprises Rs 314.31 crore by EPACK Durable and Rs 770 crore by EMTPL. The funds will be used to expand manufacturing capacities for room air conditioners, components, small domestic appliances, washing machines, televisions and other home appliances in Andhra Pradesh.

As part of the incentive package, the state government has allotted 36.41 acres of land at Sri City to EPACK Durable at Rs 60 lakh per acre for setting up the proposed manufacturing facility. The package also includes a 50% capital subsidy on eligible fixed capital investment for the combined proposed investments, extends incentives to investments already made by the company and EMTPL in Sri City after November 2024, and offers other benefits available under the Electronics Manufacturing Policy (4.0).

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The proposed investment builds on EPACK Durable's existing manufacturing operations in Sri City and forms part of its long-term capacity expansion strategy across its consumer durables portfolio.

"The approval from the Government of Andhra Pradesh is an important step in our long-term manufacturing expansion plans. Andhra Pradesh has emerged as a preferred destination for electronics manufacturing, backed by progressive policies and a strong industrial ecosystem," said Ajay DD Singhania, Managing Director and Chief Executive Officer of EPACK Durable.

He said the combined investment would strengthen the company's manufacturing capabilities across room air conditioners, components, small and large domestic appliances while leveraging its existing presence in Sri City. The investment is also expected to generate around 1,600 jobs in the state.

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The incentives are subject to the eligibility criteria under the Andhra Pradesh Electronics Manufacturing Policy (4.0), with financial benefits to accrue as the proposed investments are implemented.

EPACK Durable is an original design manufacturer (ODM) of room air conditioners and has expanded its portfolio to include washing machines, air coolers, induction cooktops, mixer grinders, bottled water dispensers, air fryers and other home appliances for leading consumer durable brands.