The race to acquire a significant stake in Haier Appliances India Pvt. Ltd is intensifying with the entry of global private equity firms TPG Capital and Singapore’s sovereign wealth fund GIC. These firms join a growing list of Indian family offices aiming to acquire up to 49% of the Indian arm of the Chinese consumer durables maker.
TPG has partnered with Dabur’s promoter, the Burman family, while GIC is teaming up with the Goenka family (Welspun Group) to bid for Haier, Mint reported, citing sources.
Earlier, it was reported that Warburg Pincus is partnering with Sunil Mittal's Bharti Enterprises, while Bain Capital has joined Puneet Dalmia’s family office to acquire at least 51% of Haier Appliances India.
Established in India in 2003, Haier Appliances India Pvt. Ltd is a subsidiary of Haier Singapore Investment Holding Pte. Ltd, which, in turn, is a wholly owned subsidiary of China-based Haier Smart Home Co., Ltd. It is India’s third-largest consumer durables maker after LG and Samsung, selling products such as refrigerators, air conditioners, washing machines, LED TVs, water heaters, deep freezers, and kitchen appliances through its extensive distribution network.
Regulatory Hurdles Driving the Sale
According to reports, the Chinese firm has been seeking an Indian investor for some time, but a 2020 government regulation accelerated the process. Following the 2020 border tensions between India and China, the Indian government tightened foreign direct investment (FDI) norms, requiring prior approval for investments from neighboring countries under Press Note 3.
By involving Indian investors, Haier aims to navigate these regulatory challenges more effectively and localise its ownership structure in alignment with government policies.
In December, The Economic Times (ET) reported that Haier was looking to bring in a passive local partner for a minority stake of 20-49%, with Citigroup Capital Markets advising on the deal.
The latest reports indicate that the first round of bidding is complete, and bidders are currently conducting due diligence. Haier Appliances India Pvt. Ltd is expected to be valued at around $2 billion.
Haier also has ambitious plans to expand its manufacturing footprint in India, including an investment of over Rs 1,000 crore between 2024 and 2028 to establish new AC production and injection molding units. The company has already invested Rs 2,400 crore in its Pune and Greater Noida plants.
Reports also suggest that Haier is considering an eventual listing on Indian stock exchanges, similar to the plans of rivals LG Electronics and Samsung.
