Epack Durable Ltd. is maintaining optimism for its living appliances business, particularly focusing on air conditioners to achieve double-digit growth despite challenging industry conditions. According to Managing Director & CEO Ajay DD Singhania, as reported by NDTV Profit, the company continues to see strong prospects for growth backed by sustained demand and a favourable outlook for the coming quarters. This optimism comes despite expectations of a 20-25% de-growth for the overall air-conditioner industry this season. Singhania emphasized the company's confidence, stating "We continue to be very optimistic for both the AC and appliances business" and expecting double-digit growth even amid industry headwinds.
The company's positive outlook is supported by heat-wave conditions during April and May that have boosted demand for cooling products. As reported by NDTV Profit, Singhania noted that the sector is currently dealing with elevated inventory levels, which are expected to be liquidated during the first quarter. The management's confidence stems from the company's ability to pass on higher input costs to brand partners, with the impact ultimately being absorbed by consumers. The company has successfully implemented price increases during the first quarter that have been passed on to brand partners through its pass-through pricing model, with such adjustments typically happening with a lag of one quarter.
Epack Durable has implemented price increases during the first quarter that have been passed on to brand partners through its pass-through pricing model. According to Singhania's comments to NDTV Profit, such adjustments typically happen with a lag of one quarter. The company follows a pass-through pricing model where both increases and decreases in costs are transferred to brand partners, supporting profitability despite challenging industry conditions. Management indicated that price hikes have been well accepted in the market, supporting profitability despite the challenging industry environment.
The company maintains very low dependence on imports, helping shield the business from external disruptions. As reported by NDTV Profit, while rupee depreciation impacted the industry during the fourth quarter, the company expects margins to improve going forward. With inventory correction expected to play out in the first quarter and pricing pressures easing, Epack Durable believes the operating environment will improve further in the coming quarters. The company's supply chain resilience, combined with its pricing strategy and market acceptance of price increases, positions it well to navigate the current challenging industry conditions while capitalizing on the favorable demand environment.
