Bharti, Warburg Pincus pick up 49% stake in Haier India for about USD 2 bn

New Delhi, Dec 24 (PTI) Bharti Enterprises and Warburg Pincus on Wednesday agreed to buy 49 per cent stake in washing machine and refrigerator maker Haier India, at around USD 2 billion (around Rs 17,955.5 crore).

The two companies said in a statement they are making a strategic investment in Haier India whose management control will continue to remain with the current Chinese owner. It, however, did not disclose the acquisition price. Industry sources said the deal value can be USD 2 billion.

Post the transaction, Bharti and Warburg Pincus will collectively own a 49 per cent stake in Haier Appliances India Ltd, whose product portfolio spans categories such as air conditioners, refrigerators, televisions, washing machines, and kitchen appliances.

The announcement puts a curtain on a hotly contested race, in which Sajjan Jindal-led JSW group, Mukesh Ambani's Reliance Industries through Jio, were participating.

China-headquartered home appliances and consumer electronics maker Haier Group will retain a 49 per cent ownership stake in Haier India, with the remaining stake to be held by Haier India's management team. So far, 100 per cent stake was held by Haier Group.

The existing team will continue to lead Haier Appliances India, though the new investors will get board representation.

According to the statement, the strategic collaboration will accelerate Haier's growth and expansion in India by bringing together and leveraging the company's global excellence in innovation, Bharti's strong standing and resultant networks, and private equity firm Warburg Pincus' strong track record of scaling brands.

Moreover the deal may also provide reprieve from Press Note 3. Through PN3, the government had made its prior approval mandatory for foreign investments from countries that share a land border with India, which includes China. As per that decision, FDI proposals from these countries need government nod for investments in India in any sector.

Haier, which is at number three and four positions in segments as washing machine, refrigerator and room airconditioner, is in the process of setting a new plant in India, where it has plans to invest Rs 3,500 crore in a phased manner by 2030.

The new plant will probably be based in South, catering the local demand and exports.

As per its strategy, Haier Appliances India is aiming to be the number two player in the Indian consumer electronics & appliances market, which is estimated to double to Rs 2 lakh crore by 2030.

"The partnership will bolster Haier India's Made in India, Made for India' vision by deepening local sourcing, expanding manufacturing capacity, driving product innovation, and accelerating market penetration," it said.

The Shandong, China-based group owned the India business through its step down unit Haier Singapore Investment Holding Pte. Limited India - where Haier Appliances India expects to end 2025 with a turnover of around Rs 11,000 crore - is the third largest market for Haier Group after China and the US.

The new capital infusion will also enhance Haier India's competitiveness across the entire value chain, the statement added.

The move comes at a time when consumer appliance market in India is booming, fuelled by rising disposable incomes, changing lifestyles, and increasing penetration of consumer appliances.

Over the past seven years, the company has achieved a CAGR of approximately 25 per cent in India, the release said adding this is one of the highest in the industry supported by robust performance across product segments and geographies.

By combining global innovation with local insights and execution, the partnership will strengthen Haier India's leadership position in the rapidly growing Indian consumer durables segment, the statement said.

Bharti said it is pleased to collaborate once again with Warburg Pincus and to partner with Haier to support the next chapter of Haier India's growth journey.

"The company looks forward to playing a significant role in the evolving consumer durables industry and leveraging the collective strengths of all parties to meet the needs of Indian consumers," the statement further said.

Bharti is confident that Haier India will further consolidate its standing as a leading brand in India, powered by global innovations, enhanced customer services, and best in-class experience.

This investment reflects Warburg Pincus' ability to leverage its pan-Asia franchise, deep local insights, global expertise, and its expansive network to support and accelerate growth for leading companies across the region.

Haier said the collaboration with Bharti Enterprises and Warburg Pincus marks an important milestone in Haier India's development journey.

"The strategic partnership fully embodies Haier's approach of 'serving globalisation with global capabilities and advancing globalisation through localisation. It brings together the complementary strengths of Bharti...and Warburg Pincus, whose strong franchises across China and India have helped scale many leading consumer and technology companies," it said.

Their combined experience, deep local insights, and global reach will significantly accelerate Haier India's localised innovation and development, it said. PTI MBI KRH ANZ KRH ANU ANU