Epack Durable's Components Business Could Contribute 10% To Revenues By FY28

The components business of Epack Durable Ltd. is expected to contribute at least 8% to 10% of the company’s total revenues in the next two to three years, its Chief Executive Officer and Managing Director, Ajay DD Singhania, has said.

The components business contributed around 3% of the total revenues of the company in fiscal 2024. Under this segment, the company sells parts like heat exchangers, PCBAs, copper tubing, sheet metal, induction coils, axial fans and more.

Talking to NDTV Profit, Singhania said that the business will see “significant growth” in the next few years.

“In FY24, our component business contributed marginally, at about 2% to 3% of our total revenue. Now, we see significant growth in our component business going forward,” he said.

This high-margin business will contribute around 10% of the total revenue of the company in the next few years.

“Component is a high-margin business...So, we are substantially increasing our component business and see this business ramping up to receive 10% of our revenue in the next two to three years,” Singhania said.

While Epack Durable manufactures components for its use, the company now has the opportunity to utilise them by supplying them to other manufacturers, the CEO explained.

“We also have the opportunity to utilise these manufacturing capabilities to supply components to other manufacturers. So, this is the other area in terms of component business,” he said.

“We see growth coming up pretty fast going forward,” Singhania added.

Epack Durable has already started to supply cross-flow fans to air conditioner manufacturers, as well as other components.

The top executive also talked about the specific revenue mix that Epack Durable is going to have after ramping up the components business. While the air conditioner business will continue to dominate, its contribution will decrease. 

“In FY27 or FY28 our revenue mix should ideally be around 60% to 65% from the AC business, which currently is 80% plus,” Singhania said.

Large home appliances should also contribute up to 10 to 15%. The balance will come from the small domestic appliances business, he added.

Shares of Epack Durable closed 0.77% higher at Rs 527.85 apiece on the NSE on Friday. In comparison, the benchmark Nifty 50 ended 0.47% down at 23,203.15 points.