According to a top official, Haier Appliances India hopes to reach USD 2 billion in sales within the next three to four years, driven by high double-digit growth in product categories and distribution channels.
Between 2024 and 2028, the home appliance manufacturer plans to invest more than Rs 1,000 crore to establish new AC production and injection molding facilities. To date, it has invested Rs 2,400 crore in its plants in Greater Noida and Pune.
In addition to increasing domestic value addition, this new plant would boost Haier India's capacity from 1.5 million units annually to 4 million units.
"Currently, we have a capacity of 1.5 million. However, if the AC market continues to grow at its current rate, we will face a capacity shortage by 2027. "The new plant will produce 2.5 million units," Haier Appliances India President NS Satish told PTI on Sunday.
Haier is also planning to open a plant in South India and will announce the investment soon.
Without providing further information, he stated that the investment would be "similar in size and capacity to what we have currently in the Noida Industrial Park".
In 2024, Haier reported a 36% increase in revenue to around Rs 8,900 crore, crossing the billion-dollar sales mark. Satish anticipates a revenue of more than Rs 11,500 crore this year.
"After that, we expect to spend around Rs 2,000 to 2,500 crore per year or more. So, we have big plans. And we see a significant opportunity in India. When you look at the economy's GDP, which is doing very well, the next thing you notice is product penetration, which is very low when compared to our global counterparts," he explained.
When asked when Haier Appliances India would become a USD 2 billion company, Satish responded, "Definitely within the next three to four years." We are already a $1 billion company. I believe it will exceed USD 2 billion within the next three to four years."
The company sees a significant opportunity in segments such as air conditioners, refrigerators, washing machines, TV panels, and commercial freezers, where penetration in India is very low in comparison to other countries.
India is the fourth largest market for Shandong, China-based Haier Group Corporation, and Satish believes it will be one of the top three global markets in the next 4-5 years, with a sales revenue of USD 2 billion.
"India is an extremely important market. We see a huge opportunity in its demographics and economics...If we reach the USD 2 billion mark, I believe we will be among the top three contributors."
China, North America, and 'Russia and Europe' are the Haier Group's top three markets.
Haier, like other manufacturers, is witnessing premiumization in India's consumer electronics and appliances market. However, Satish stated that, besides premium products, it would focus on mass products where people want more value.
When asked if the Haier Group has any plans to introduce its global brands in the growing Indian premium market, Satish responded: "We still have a huge scope for developing Haier products at this point, and we would continue to invest in building a Haier brand and Haier product portfolios. At this point, we have not considered bringing in any global brands."
