Epack Durable Ltd. aims to accelerate expansion in other areas beyond room air conditioners to optimise capacity utilisation during the off-peak AC season, according to Chief Executive Officer Ajay Singhania.
This will aid the overall growth in FY26 while reducing the dependence on the core AC segment for revenue generation, the managing director told NDTV Profit in a conversation on Wednesday.
The appliance manufacturer will continue growing its AC segment while accelerating expansion in other areas, such as washing machines, coolers and component manufacturing.
"Reducing dependence on AC does not mean we don't intend to stop growing it. The AC segment will continue to outpace market growth," he explained.
"At the same time, our other businesses — small domestic appliances, newly introduced washing machines, coolers — and the component business are all focused on growing at double or triple the pace of AC growth," Singhania added.
In FY25, Epack Durable's AC segment contributed 74% of revenue, down from 85% in FY23. The company now aims to reduce AC vertical's contribution to revenue further to 65% through diversification.
Singhania explained that Epack Durable's capacity investments mainly focus on manufacturing parts that are fungible across products. The components produced, including PCB controllers, serve not just ACs but also washing machines, refrigerators and energy meters. This flexibility will allow better utilisation of capacity during the off-peak AC season.
"Our focus is to diversify as much as possible to improve utilisation during the off-peak AC season. The overall objective has been to enhance asset utilisation in the off-peak period, which is why we continue to focus on growing our component and SDA businesses," the CEO said.
While asset utilization for AC is close to 90–100% during the peak season, the off-peak season remains a challenge for utilization, he added.
The company anticipates that better capacity use will positively impact overall profitability in FY26 and FY27, without compromising AC segment growth.
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