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New Delhi: A big business update has come out regarding the fast-growing consumer electronics company Haier in India. According to an ET report, the Chinese government has allowed Haier to sell 49 percent stake in its Indian subsidiary, Higher Appliances India. After this decision, the way is now cleared for Bharti Enterprises and private equity firm Warburg Pincus to make big deals in India. ET quoted industry-related sources as saying that the formal announcement of this agreement is possible very soon.
Under the proposed agreement, three parties will now be stakeholders in Higher Appliances India. Haier will continue to hold 49 percent stake, while the partnership of Bharti Enterprises and Warburg Pincus will also buy 49 percent stake. The remaining 2% stake will be held by the company's employees. According to sources, the valuation of Hire India in this deal is being estimated at around 1.3 to 1.5 billion dollars, although the exact amount of the deal has not been made public yet.
According to the information, all parties associated with the deal will start the process of obtaining the necessary local and regulatory approvals in the next 3 to 4 months, so that the deal can be finalized. This deal is considered an important part of the strategy for hires to advance their business in India and to address regulatory challenges.
Haier wants to strengthen its business in India, but due to strict regulations regarding Chinese companies, it was facing many regulatory obstacles. Especially the approval of Press Note 3 related to foreign investment remained a major obstacle. The company wants more capital to set up a third manufacturing plant in India and to expand the marketing and sales network. In such a situation, it was decided to sell the stake to a trusted Indian business group.
Haier India had earlier sought the approval of Press Note 3 for its investment of Rs 1,000 crore from its Chinese parent company, which is pending till now. However, this deal with India-Warburg will not come under the purview of Press Note 3, which will provide major regulatory relief to the company.
Haier sells products like fridges, washing machines, TVs, microwaves and air conditioners in India. The company has rapidly increased market share in the fridge, washing machine and TV segment in recent years. According to the filing made in the Registrar of Companies, Hire India has surpassed Whirlpool India in terms of sales in the financial year 2024-25. Now it has become the third largest consumer electronics company in India after LG and Samsung.
Haier India recorded sales of around Rs 8,234 crore in 2024-25, which is 30 percent more than last year. At the same time, the company's net profit increased by more than 200 percent to 480 million rupees. The company has set a target of sales of Rs 11,500 crore for 2025-26.
