EPACK Durable Ltd., a manufacturer of room air conditioners and domestic appliances, is targeting a topline growth of 35% in FY26, backed by a diversification of its portfolio.
The topline growth will be aided by the product diversification over the last three years, according to the company's MD and CEO, Ajay DD Singhania.
“We are going to be 35% plus kind of a growth on an annualised basis. So, this comes not only from AC but also from the diversification efforts over the last three years—small domestic appliances, the large appliances and the component business, which we have scaled. Small appliances and the washing machines are bigger bets for us,” Singhania said in a conversation with NDTV Profit on Wednesday.
He added that a good monsoon will lead to a better festive season for the company.
Singhania also expressed optimism over achieving up to 10% growth in the AC segment, despite the challenges in the first quarter, which is common for the industry.
“Overall, Q1 is a degrowth of anywhere between 15% to 20% for the industry, but the entire year it seems we are still on track to achieve a growth of anywhere up to 10%,” he said.
For the AC industry, unseasonal rains in April and May have led to a “washout” in regions such as southern and western India. North India has done better due to a heatwave, he added.
In Q1 FY25, the industry saw a 70% year-on-year growth. This higher base is also partially responsible for the degrowth projected for Q1 FY26, according to the top executive.
Beyond sales figures, Singhania also highlighted a pressing regulatory issue faced by the industry. He confirmed that numerous importers, including almost all air conditioner manufacturers, have received show-cause notices from authorities regarding the import of inner-grooved copper tubes.
These specialised components, which are not manufactured in India, are imported at zero duty from the Association of Southeast Asian Nations (ASEAN) countries like Thailand and Malaysia under a Free Trade Agreement (FTA).
A 7.5% duty on these imports is supposed to be waived under the FTA. However, importers have been paying a 7.5% bank guarantee on these imports for the past 18 months. He said the industry wants clarity on whether a duty is actually applicable to these imports. He added, “We don't mind if the duty applies to everybody.”
“Nobody has the capability to go to a third country and get it validated. It's more of a government-to-government kind of transaction wherein the country of origin certificate is issued by the ASEAN country. We are trying to take a stand together as an industry here,” Sighania explained.
Shares of EPACK Durable ended 0.61% higher at Rs 339.35 apiece on the NSE, while the benchmark Nifty50 closed 0.17% lower at 24,812.05.
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