Sunil Mittal, the founder of Bharti Airtel, is in advanced talks to buy a 49 percent stake in the Indian unit of China's Haier Smart Home Co. for around $2 billion, Bloomberg reported.
Mittal has teamed up with private equity firm Warburg Pincus to buy the stake, and a deal could be finalized in the upcoming weeks.
According to reports, Haier might decide not to sell as the discussions go on, and other buyers might show up.
Reliance Industries Limited (RIL), owned by Mukesh Ambani, was mentioned as a serious candidate for the stake last month.
According to reports last month, the Burman and Goenka families of Dabur partnered with Singapore's sovereign wealth fund, GIC, and international private equity firm, TPG Capital, to purchase the stake.
Haier sees continued India surge
In 2024, Haier, a company that sells televisions, air conditioners, washing machines, and refrigerators in India, reported a 36% increase in revenue to about ₹8,900 crore. It is ranked third in India's household appliance market, behind Samsung and LG, according to reports. According to NS Satish, president of Haier Appliances India, the company's revenue is anticipated to surpass ₹11,500 crore by 2025.
"We expect to make between ₹2,000 crore and ₹2,500 crore or more a year. 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.
Investment for expansion
The home appliance manufacturer plans to invest over ₹1,000 crore between 2024 and 2028 in new air conditioner production and injection moulding units. It has already invested ₹2,400 crore in its facilities in Pune and Greater Noida.
"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," Satish explained.
