Haier is looking to expand its factories in Pune and Greater Noida and establish another greenfield unit in the southern part of the country.
In an effort to grow India’s electronics value chain, government agencies and regulators have imposed tight security measures and scrutiny on Chinese companies. For smoother operation, China’s major consumer electronics brand, Haier, is now actively looking for an Indian partner similar to MG Motors partnership scenario. After LG and Samsung, Haier is known to be India’s third-largest consumer electronics company.
With the help of City’s advisory measures, the company is looking to partner with those Indian companies that do not have much competition globally. Experts claim the partnership stake could be around 49 percent for the Chinese brand. Haier entered the Indian market in January 2004 and is now hopeful of having a higher market share in the country similar to that of LG and Samsung via the partnership. Reports even highlighted that LG plans to raise $1-1.5 billion in the coming year, valuing $13 billion.
In an effort to increase their footholds in India, Chinese firms are desperately looking for Indian partnerships. Via Press Note 3, the Indian regulatory agencies have escalated their monitoring of Chinese firms. The government of India urged all existing and upcoming Chinese companies to have their distribution networks in the country and must have Indian equity partners.
An industry leader told a leading business daily in India that, keeping an eye on geopolitics and border tensions, Haier is looking forward to partnering with an Indian company that is not associated with the durable business but will help them get rid of bureaucratic hurdles. The company wants rapid approvals and investments.
The valuation of Indian consumer appliance companies like Havells, Crompton Greaves Consumer Electricals, Voltas, and Whirlpool India reflects a growth premium driven by strong domestic demand, rising urbanization, and aspirational consumption trends. These companies trade at higher valuation multiples than their developed-market peers. This is because Indian consumer appliance stocks trade at about 3x revenue, twice the revenue multiple seen in developed markets like the U.S. or Europe. The sector in India carries Price-earnings (P/E) multiples ranging between 50 to 60 times.
According to the Registrar of Companies, Haier’s market growth in India increased the company’s sales to 17 per cent in 2023. In the same year, the company’s net profit stood at Rs 154 Crore. Haier is looking to expand its investments in India, which includes expanding its factory in Pune and Greater Noida and another greenfield unit in the southern part of the country, for which it is looking for land in Tamil Nadu and Andhra Pradesh.
