China's Hisense Group to acquire 15-26 pc stake in Epack's new plant in India: Official

Chinese TV and appliance major Hisense Group plans to acquire a stake of between 15 and 26 per cent in a new air conditioning and washing machine manufacturing plant being established by Epack in Sri City, Andhra Pradesh, a top company official said on Thursday. It will depend on the Indian government regulations regarding foreign direct investment (FDI) from China, he said.

"We will take a minimum of 15 per cent or a maximum of 26 per cent, depending on the permissions and regulations in place," Hisense India managing director Steven Li said.

He acknowledged that the group is keen on a greater commitment to India if regulations permit.

He was in Kolkata to launch the country's first 120-inch laser TV, along with a new range of air-conditioners for the next summer season.

The facility in Andra Pradesh, an exclusive manufacturing site for Epack Durables, will produce air conditioners and washing machines at an investment of Rs 250 crore in the first phase, another official said.

"The plant will be operated by a special purpose vehicle, Epack Manufacturing Technologies, in which Hisense will acquire the stake. It will commence mass production from October 2025," Li said.

The facility will also cater to exports for Hisense, primarily to Southeast Asian markets and Mexico in future.

Li ruled out a foray into mobile handsets in India but said the company will launch washing machines soon.

He added that the group aims to double its revenue in India to USD 200 million by 2027.

Hisense, which was primarily an online brand, has begun building an offline distribution network, starting in eastern India in association with Kolkata-based Rohit Refrigeration.

"We will build a network of 1500-2,000 dealers in the east in the near future to sell our wide range of televisions and refrigerators. After the east, we will expand into southern India, followed by the northern parts," CEO Pankaj Rana said.

The company claimed that Hisense is a global leader in the 100-inch TV category and is gaining traction in India as well.