Eyeing to expand its footprint in the Indian home appliance market further, Haier is reportedly planning a ₹10 billion joint venture with JSW Group, pending government approval.
Haier Group, the Chinese manufacturer of home appliances, is planning to establish a joint venture with India’s JSW Group, with an estimated investment of ₹10 billion, according to an Economic Times report.
The proposal from Haier, based in Shandong, has been submitted to the Indian government for approval, as it falls under provisions issued in 2020. It is currently under review by the committee responsible for such applications, which is headed by the Home Secretary and consists of various inter-ministerial representatives. This regulation mandates that companies from countries sharing land borders with India must obtain government clearance before investing.
However, none of the companies have announced anything officially about the partnership.
This is not a new Indo-China venture for JSW Group, valued at US$24 billion. In November last year, it entered into a joint venture with China’s SAIC Motor to acquire a 35% stake in MG Motor India, forming the company JSW MG Motor India Private Ltd. Indian entities, including JSW, hold a 51% stake in this venture.
For two decades, Haier has been operating in India through its subsidiary, Haier Appliances India, which was set up in 2003. Based in Greater Noida, the subsidiary is part of Haier Singapore Investment Holding Pte. Haier is a prominent player in the Indian home appliances and consumer electronics sector, with two manufacturing plants in Pune, Maharashtra, and Greater Noida, Uttar Pradesh.
With a business worth over ₹80 billion in India, Haier is expanding its manufacturing capacity to meet growing demand, particularly from rural areas and smaller towns, as well as from the middle class in urban markets seeking affordable options.
India is Haier’s third-largest market globally, after China and the US, with the company having invested ₹35 billion in the country to date. Haier’s combined manufacturing capacity across its two Indian plants is 9 million units annually.
Competing with brands like Samsung, Panasonic, Whirlpool, Bosch, and Indian manufacturers like Godrej and Bajaj Electricals, Haier has outlined ambitious plans for further expansion in India.
