By buld_online 
Sunil Mittal, the founder of Bharti Airtel, and private equity firm Warburg Pincus are currently in exclusive negotiations to acquire a 49% stake in the Indian arm of China’s home appliance giant Haier. The stake is reportedly valued at around $2 billion, a significant investment reflecting the growing interest in India’s burgeoning home appliances market. The exclusivity period is in place, during which neither party will seek alternative deals, with an official announcement expected later this month. This strategic move aligns with the increasing demand for home appliances in India, driven by rising disposable incomes and urbanization, Moneycontrol reported.
The acquisition structure has been a pivotal aspect of discussions, with the consensus now for the Mittal-Warburg Pincus consortium to hold a 49% stake, matching the 49% that Haier’s Chinese parent company will maintain. The remaining 2% stake is assigned to employees, ensuring joint control by both the parent company and the consortium, which will influence board seats and other strategic decisions.
Haier entered the Indian market in 2004, providing a diverse range of household appliances such as refrigerators, air-conditioners, washing machines, and televisions. The company reported a 36% year-on-year revenue increase in 2024, reaching approximately Rs 8,900 crore, and anticipates exceeding Rs 11,500 crore in revenue for 2025, news agency PTI reported in March.
As the third largest player in the Indian home appliances market, Haier India is behind LG and Samsung. This growth trajectory underscores Haier’s commitment to expanding its footprint in India, leveraging its strong brand reputation and customer loyalty.
The potential new partnership with Mittal and Warburg Pincus comes amid Haier India’s plans to go public with an initial public offering (IPO) within the next two years, post the inclusion of the new investors. This strategic move is expected to bolster Haier’s market position and leverage India’s robust economic growth, given the country’s expanding GDP and relatively low product penetration. The IPO is anticipated to attract significant investor interest, further fueling Haier’s expansion plans.
“We’re targeting an additional ₹2,000 to ₹2,500 crore in revenue annually going forward. The growth outlook is strong, given India’s robust GDP and the relatively low product penetration compared to global markets,” NS Satish, President of Haier Appliances India, told PTI.