Transaction:
- EPACK Prefab secured USD 20 million in the first funding round, led by GEF Capital Partners, global private equity fund.
- This funding underscores EPACK Prefab’s commitment to sustainability, leveraging modular construction technologies with a significantly lower carbon footprint compared to traditional methods.
About EPACK Prefab:
- Established in 1999, EPACK Prefab manufactures PEB, prefabricated modular structures and insulation products, with a strong emphasis on sustainability and fast construction methods.
- The end-to-end PEB solutions cater to a broad range of industries, including warehousing, aviation, healthcare, education, and data centres with 7409+ projects execution to its credit.
About Investor:
- Formed in 2018, through a corporate spin-out from Global Environment Fund, GEF Capital Partners is a PE fund in the climate growth investment spectrum, investing in middle-market opportunities.
- The portfolio investments of the fund includes Hero Motors, Electra EV, Premier Energies, 3SC and Seedworks.
Rationale:
- The capital infusion will enhance the company’s manufacturing capacity at its advanced facilities in Greater Noida, Ghiloth in Rajasthan, and Mambattu in Andhra Pradesh. Collectively, these have an annual production capacity of over 133,924 metric tonnes.
- The investment will enhance production capabilities, accelerate new product development, and fund energy-efficient, prefabricated construction technologies, with a strong focus on sustainability.
- The funds will support the company’s nationwide growth and expansion into international markets, positioning it as a leader in rapid building solutions.
- Reflecting its commitment to fast and eco-friendly building processes, EPACK Prefab recently set a benchmark by constructing one of India’s fastest buildings in just 150 hours at its Mambattu facility in Andhra Pradesh, showcasing the power of prefabricated construction.
- Prefabricated buildings offer environmental benefits, such as waste reduction and better air quality during construction, while also significantly shortening build time, making them a more efficient and eco-friendly option.
- It also demonstrates a 47% reduction in GHG emissions and a 60–62% savings in electricity consumption for heating and cooling, attributed to the use of efficient building methods and polyurethane insulation.
- The increasing urban population and government initiatives like PMAY are driving demand for prefabricated buildings, particularly in affordable housing projects, making them an essential solution for rapid urbanization.
- According to reports, The Prefabricated construction industry in India is expected to grow at a CAGR of 13.5% from INR 1,146 billion in 2024 to reach INR 1,904.8 billion by 2028.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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