China’s Haier is on the lookout for a strategic local partner in India, following a similar approach taken by MG Motor in its partnership with JSW Group. This move comes as Indian regulators and government agencies are increasingly scrutinizing Chinese companies, leading to slow approval processes for investments from China under Press Note 3 regulations.
Haier Appliances India is currently the third-largest appliances manufacturer in India, following LG and Samsung. The company is working with Citi, its global advisor, to connect with Indian firms that do not compete with its business.
While Haier initially indicated it would consider selling up to a 25% stake, sources suggest this could increase to 49%. A joint control arrangement—where the Indian partner holds the largest share and local management is established as a step towards a local stock market listing—may also be part of the plan. Haier has not yet responded to inquiries regarding this matter.
Haier entered the Indian market in 2003 and aims to secure a deal at a premium, with its valuation being compared to LG Electronics India, which is planning to raise between $1 billion to $1.5 billion next year, valuing itself at around $13 billion. However, many industry executives anticipate Haier’s valuation to be between $2 billion and $2.2 billion, largely due to its Chinese roots.
The company is specifically avoiding partnerships with firms that have competing businesses, which rules out potential partners like Tata, Godrej, or Reliance Industries. Haier is also looking for partners who have strong connections with policymakers to facilitate growth and protect its local operations and Chinese workforce.
“Haier is seeking a strategic Indian partner who can help navigate the complex regulatory environment and political landscape, especially given the ongoing geopolitical tensions between India and China,” said an industry executive. “Their focus is on ensuring profitable operations and growth in India rather than just financial investment.”
On the other hand, Indian companies like Torrent Group, Dabur, and JSW Group are diversifying rapidly and exploring unique investment opportunities in various sectors, including financial services, retail, and entertainment. Notable billionaires such as Sunil Mittal and Gautam Adani are also making significant investments through their family offices.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
