Latest news with #HaierIndia
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Business Standard
7 days ago
- Automotive
- Business Standard
Sunil Mittal, Warburg Pincus eye 49% in Haier India at steep discount
Sunil Mittal's family office and US-based private equity major Warburg Pincus have submitted a bid to acquire a 49 per cent stake in Haier India at a sharply reduced valuation of ₹6,000 crore ($720 million), according to people familiar with the matter. The Chinese parent, Haier Group, had initially sought a valuation of around $2 billion (₹17,100 crore), but offers were significantly lower, said one of the persons, asking not to be named as the discussions are private. Haier is now weighing whether to proceed with the deal or wait for improved market conditions, the person added. As part of the proposed transaction, Haier India employees are expected to acquire a 2 per cent stake, while a public listing is being considered within two years to provide an eventual exit route for the Chinese firm, the people said. 'After the deal, the buyer will have to pay a steep brand usage fees and royalties to the Chinese parent, which has dampened the valuation,' said a person close to the development. Haier, which fully owns the Indian subsidiary, has been exploring a potential exit for several months and even held early-stage discussions with Reliance Industries Ltd, India's largest conglomerate, according to the people. Emails sent to Haier, Mittal's office, and Warburg Pincus on Friday went unanswered until the press time. The proposed deal comes amid a broader trend of Chinese firms paring back their India exposure following geopolitical tensions and growing scrutiny of Chinese investments by India. In March last year, Chinese automaker SAIC Motor agreed to sell a majority stake in its Indian subsidiary MG Motors India to the Sajjan Jindal group. In May, Ant Group exited its investment in Paytm through $246 million worth via block trades. Haier entered India in 2004 and holds a 14 per cent share of the refrigerator market. Its presence in other categories — including washing machines, televisions, and air conditioners — remains in the single digit. India's household appliances market is projected to reach $64.3 billion in 2025, growing at a 7.3 percent CAGR through 2030, according to data from Statista.
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Business Standard
7 days ago
- Business
- Business Standard
Mittal, Warburg Pincus eye majority stake in Haier India at steep discount
Haier's Chinese parent may offload 49% in Indian arm at ₹6,000 crore, far below its initial $2 bn ask; deal includes brand fees, staff equity, and a planned IPO within 2 years Sharleen Dsouza Dev Chatterjee Mumbai Listen to This Article Sunil Mittal's family office and US-based private equity major Warburg Pincus have submitted a bid to acquire a 49 per cent stake in Haier India at a sharply reduced valuation of ₹6,000 crore ($720 million), according to people familiar with the matter. The Chinese parent, Haier Group, had initially sought a valuation of around $2 billion (₹17,100 crore), but offers were significantly lower, said one of the persons, asking not to be named as the discussions are private. Haier is now weighing whether to proceed with the deal or wait for improved market conditions, the person added. As part of
Time of India
14-05-2025
- Business
- Time of India
Beijing Nexus with Pak may Raise A Great Wall in India
Indian companies exploring partnerships with Chinese companies are expecting a further tightening of the regulatory process, given the latter's backing of Pakistan during recent hostilities, said the chief executives of four large firms. This has cast a shadow on several deals in the pipeline, including appliance maker Haier's plan to sell stakes in its Indian operation, and two other joint ventures (JV) that are awaiting government clearance under Press Note 3 , they said. Indian contract manufacturers have also been in active talks with companies from China on joint applications to the electronics components production-linked incentive (PLI) scheme. A large domestic company that was evaluating the Haier India stake has decided to go slow. A senior executive said it will only proceed after evaluating the regulatory scenario on China deals. Reliance Industries, and a consortium of Sunil Mittal of Bharti Group and Warburg Pincus, are reportedly the frontrunners, with the Chinese company wanting to offload 25-51% equity at a $2-2.3 billion valuation. In 2020, India turned cold to Beijing after military clashes, and issued Press Note 3 norms that require multi-department approvals for investments for those based in bordering countries. Only a handful of large Chinese companies have got such clearances, forcing others to sell stakes or enter JVs with Indian entities. Live Events Government officials indicated over the weekend that Chinese entities will only be allowed a small stake in joint ventures under the PLI scheme, provided these are for critical components not available elsewhere. 'The government's stand on China is changing again. We fear most proposals will not receive Press Note 3 approvals, which will jeopardise our investment plans under the PLI scheme,' said one CEO cited earlier. 'We have started an evaluation, where we can go solo in the current circumstance.' Chinese companies are not keen on technical alliances with Indian partners and prefer joint ventures. Pakistan's foreign ministry had cited China's foreign minister Wang Yi as saying on Saturday that China 'will continue to stand firmly by Pakistan in upholding its sovereignty, territorial integrity, and national independence' in a phone conversation with deputy prime minister and foreign minister Muhammad Ishaq Dar. The statement on X said China was Pakistan's 'all-weather strategic cooperative partner and ironclad friend' and that both the leaders had 'emphasised the importance of close communication and agreed to maintain ongoing coordination in the days ahead.' This came after India and Pakistan reached an agreement to stop firing and military action on May 10. The chief executive of a smartphone contract manufacturer said he expects most Press Note 3 applications will now be put on hold or get rejected. Still, the electronics industry needs the technology that China has, he said. 'There are options in Japan and South Korea, but Chinese tech is more cost competitive,' the CEO said. 'We hope economic pragmatism eventually takes centrestage, otherwise India's manufacturing plans will get affected.' Homegrown Dixon Technologies has two Press Note 3 applications pending with the government—one for a joint venture with smartphone contract manufacturer Longcheer and another with HKC Corp to make display modules. Tata-owned Voltas and Shanghai Highly Group were in talks for a joint venture for compressor manufacturing. So were other homegrown contract manufacturers such as Micromax-owned Bhagwati Products, PG Electroplast and Epack Durable for applications under the PLI scheme for electronics components.
Time of India
13-05-2025
- Business
- Time of India
Beijing's Pakistan stand deepens India-China divide, clouding Haier and PLI-linked JV deals
Live Events PN3 Nod Seen as Unlikely (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Kolkata: Indian companies exploring partnerships with Chinese companies are expecting a further tightening of the regulatory process, given the latter's backing of Pakistan during recent hostilities, said the chief executives of four large has cast a shadow on several deals in the pipeline, including appliance maker Haier's plan to sell stakes in its Indian operation, and two other joint ventures (JV) that are awaiting government clearance under Press Note 3 , they contract manufacturers have also been in active talks with companies from China on joint applications to the electronics components production-linked incentive (PLI) scheme.A large domestic company that was evaluating the Haier India stake has decided to go slow. A senior executive said it will only proceed after evaluating the regulatory scenario on China deals. Reliance Industries , and a consortium of Sunil Mittal of Bharti Group and Warburg Pincus, are reportedly the frontrunners, with the Chinese company wanting to offload 25-51% equity at a $2-2.3 billion 2020, India turned cold to Beijing after military clashes, and issued Press Note 3 norms that require multi-department approvals for investments for those based in bordering countries. Only a handful of large Chinese companies have got such clearances, forcing others to sell stakes or enter JVs with Indian officials indicated over the weekend that Chinese entities will only be allowed a small stake in joint ventures under the PLI scheme, provided these are for critical components not available elsewhere.'The government's stand on China is changing again. We fear most proposals will not receive Press Note 3 approvals, which will jeopardise our investment plans under the PLI scheme,' said one CEO cited earlier. 'We have started an evaluation, where we can go solo in the current circumstance.'Chinese companies are not keen on technical alliances with Indian partners and prefer joint foreign ministry had cited China's foreign minister Wang Yi as saying on Saturday that China 'will continue to stand firmly by Pakistan in upholding its sovereignty, territorial integrity, and national independence' in a phone conversation with deputy prime minister and foreign minister Muhammad Ishaq statement on X said China was Pakistan's 'all-weather strategic cooperative partner and ironclad friend' and that both the leaders had 'emphasised the importance of close communication and agreed to maintain ongoing coordination in the days ahead.'This came after India and Pakistan reached an agreement to stop firing and military action on May chief executive of a smartphone contract manufacturer said he expects most Press Note 3 applications will now be put on hold or get the electronics industry needs the technology that China has, he said. 'There are options in Japan and South Korea, but Chinese tech is more cost competitive,' the CEO said. 'We hope economic pragmatism eventually takes centrestage, otherwise India's manufacturing plans will get affected.'Homegrown Dixon Technologies has two Press Note 3 applications pending with the government—one for a joint venture with smartphone contract manufacturer Longcheer and another with HKC Corp to make display Voltas and Shanghai Highly Group were in talks for a joint venture for compressor manufacturing. So were other homegrown contract manufacturers such as Micromax-owned Bhagwati Products, PG Electroplast and Epack Durable for applications under the PLI scheme for electronics to reports citing government data, India had got 526 foreign direct investment (FDI) proposals under Press Note 3 worth $11.9 billion between April 2020 and December 2023. Of these, 124 were approved and 201 were rejected. The rest are pending with the Centre. At $2.5 billion, China's share in India's FDI equity inflows was 0.38% in that Chinese companies such as SAIC Motor, Haier, Oppo, Vivo, Xiaomi, BYD and Shanghai Highly Group had faced Press Note 3 rejections and other regulatory issues in recent US-China tariff tussle had led to some softening of India's stand. Several Chinese companies also became more flexible on JVs, agreeing to minority stakes compared with their earlier insistence on majority ownership.
India.com
09-05-2025
- Business
- India.com
Sunil Mittal beats Mukesh Ambani in race to buy Rs 160000000000 Chinese company? it deals in…, the company is…
Sunil Bharti Mittal, the founder of Bharti Airtel, is reportedly preparing for a significant acquisition. According to media reports, Mittal's company is in talks to purchase a 49% stake in the Indian unit of China-based Haier Smart Home. The deal for Rs 16,800 crore and he is also facing competition from Mukesh Ambani's Reliance Industries. To complete this transaction, Mittal has partnered with private equity firm Warburg Pincus. After this acquisition, Mittal's will enter into the consumer electronics market. Haier Plans To Sell Up To 49% Stake Earlier reports in October revealed Haier's plan to sell between 25% and 49% of its Indian unit. Other companies like Singapore's Temasek Holdings, GIC, and Abu Dhabi's sovereign wealth fund Mubadala Investment are also interested in the deal. Haier India makes products like refrigerators, washing machines, televisions, and air conditioners, with sales of Rs 8,900 crore in 2024. The company saw over 30% growth in revenue in South Asia during the first quarter of this year as compared to the previous year. Haier holds a 21% share in India's refrigerator market which is the third-largest consumer electronics company in the country, after LG and Samsung. Mukesh Ambani Joins Race Mukesh Ambani's Reliance Industries has also entered the race to acquire a stake in Haier India. Reliance already deals in the consumer electronics sector through brands like BPL and Kelvinator. Haier has appointed Citibank to manage this stake sale process. As Ambani and Mittal both are competing for this acquisition, the deal will bring major changes for India's consumer electronics sector. If Mittal finalizes this acquisition, it will add another sector in his business portfolio. His current net worth, shared with his family, is around $28 billion, according to Bloomberg Billionaires Index.
