Multibagger Consumer Durables Stock Jumps 3% as Andhra Pradesh Government Approves Rs 1,084 Crore Manufacturing Expansion Plan
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EPACK Durable has received approval from the Government of Andhra Pradesh for a tailor-made incentive package covering a proposed investment of Rs 1,084.31 crore to expand its consumer durables manufacturing capacity.
✨ Key Takeaways
On Wednesday, Indian benchmark indices traded higher, with the Nifty 50 rising 154.55 points, or 0.65 per cent, to 24,020.30. Amid the positive market sentiment, EPACK Durable share price jumped 2.74 per cent to Rs 239.07.
Andhra Pradesh Approves Rs 1,084 Crore Expansion Plan
EPACK Durable informed the stock exchanges that it has received approval from the Government of Andhra Pradesh for a tailor-made incentive package under the Mega Category of the Andhra Pradesh Electronics Manufacturing Policy (4.0).
The approved package covers a combined proposed investment of
Epack Durable Ltd
Rs 1,084.31 crore, comprising Rs 314.31 crore by EPACK Durable Limited and Rs 770 crore by its wholly-owned subsidiary, EPACK Manufacturing Technologies Private Limited (EMTPL).
The proposed investment will be used to expand manufacturing capacity for room air conditioners, components, small domestic appliances, washing machines, televisions and other home appliances, further strengthening the company's manufacturing presence in Sri City, Andhra Pradesh.
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Key Incentives Under the Approval
As part of the incentive package, the Andhra Pradesh Government has allotted 36.41 acres of land to EPACK Durable at Rs 60 lakh per acre for setting up the proposed manufacturing facility.
The company will also receive a 50 per cent capital subsidy on eligible fixed capital investment for the combined projects. Additionally, the package extends policy benefits to investments already made by the company and its subsidiary in Sri City after November 2024, along with other incentives available under the state's Electronics Manufacturing Policy (4.0). The financial benefits will accrue as the proposed investments are implemented and subject to the prescribed eligibility criteria.
Management Commentary
Commenting on the development, Ajay DD Singhania, Managing Director and Chief Executive Officer of EPACK Durable Limited, said: "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. The proposed combined investment will enable us to expand our manufacturing capabilities across room air conditioners, small domestic appliances, large domestic appliances and components while building on our existing presence in Sri City."
He further added that the expansion is expected to generate around 1,600 jobs in the state while strengthening the company's manufacturing scale, operational efficiencies and localisation efforts to meet the growing demand for consumer durables.
About EPACK Durable
Established in 2003, EPACK Durable Limited is one of India's leading Original Design Manufacturers (ODM) for consumer durables. The company manufactures room air conditioners, washing machines, televisions, small domestic appliances and key components, with manufacturing facilities located in Dehradun, Bhiwadi and Sri City. EPACK held a 24 per cent market share in India's room air conditioner ODM segment during the first half of FY25 and serves both domestic and international customers.
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Disclaimer: The article is for informational purposes only and not investment advice.