Ramping up its expansion and retail presence in India, Hisense Group is reportedly eyeing a 26% stake in Epack’s subsidiary, which is building a ₹8-10 billion manufacturing plant in Andhra Pradesh.
Chinese consumer electronics manufacturer Hisense Group is in talks to acquire up to a 26% stake in Epack Durable’s subsidiary, Epack Manufacturing Technologies.
According to the Economic Times, the subsidiary is establishing a major manufacturing facility in Sri City, Andhra Pradesh, to produce air conditioners, refrigerators, washing machines, and small appliances under the Hisense brand. The plant is expected to involve an investment of ₹8-10 billion.
This follows after Hisense signed a contract manufacturing agreement with Epack in October as a part of the former’s broader strategy to strengthen its presence in India.
Epack’s Managing Director, Ajay DD Singhania, confirmed the discussions and revealed plans to expand in India, including exporting products. As part of the strategy, Epack is also seeking about 32-40 hectares (80-100 acres) in Sri City for a component vendor park.
Singhania also anticipated the Hisense partnership will generate nearly $1 billion in additional revenue over the next five years.
Under Indian government rules, investments from neighbouring countries like China require clearance due to ongoing tensions between India and China. Hisense is seeking approval for foreign direct investment (FDI) to proceed with the acquisition.
Epack, one of India’s primary contract manufacturers of air conditioners, is also expanding its operations, investing ₹2.5 billion to upgrade one of its existing plants for Hisense AC production. Epack’s FY24 sales reached ₹14.19 billion, and the new plant is expected to begin operations by mid-2024.
Meanwhile, Hisense is also focused on retail expansion in India, with plans to move beyond e-commerce sales of televisions to offline retail outlets.
