Reliance Industries Ltd (RIL), under Mukesh Ambani 's leadership, has positioned itself as a key contender for acquiring a substantial stake in Haier's Indian operations. The Chinese consumer electronics manufacturer is aiming to strengthen its local presence by partnering with an Indian strategic ally. This development has created a competitive scenario between RIL and a consortium including Sunil Mittal of the Bharti Group, similar to their existing rivalry in the telecom sector.
Currently holding the third position after LG and Samsung, Haier Appliances India is exploring options to reduce its equity by 25% to 51%. The company is considering a structure similar to MG Motors, where an Indian entity would become the principal shareholder.
In response to Donald Trump's tariff policies, which risk making their products costly in the US market, Chinese companies are now more willing to reduce their stakes in favour of Indian entities to maintain their expansion in India.
The company seeks a valuation of $2-2.3 billion, inclusive of a control premium. Since late last year, Haier has engaged Citi to connect with substantial family offices and private equity funds for stake acquisition, according to an ET report.
Last year, Mittal established a consortium with Warburg Pincus. The competition includes several prominent groups: TPG partnering with the Burman family of Dabur, Goldman Sachs with the Amit Jatia family, and GIC of Singapore collaborating with BK Goenka of Welspun, following their initial alliance with Uday Kotak. The partnership between Puneet Dalmia's family office and Bain Capital has withdrawn from consideration.
Reliance has recently joined the competition after initial non-binding proposals were submitted earlier this year. Their consultants have established direct communication with Haier's main office in Qingdao, according to informed sources. A few weeks ago, Mittal visited China to meet with Haier's senior leadership, according to two executives from the industry.
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Sources told the financial daily that Reliance's retail division would handle the potential purchase. Unlike other contenders, Reliance currently prefers to proceed independently. The company has been developing its electronics business through licensed brands such as BPL and Kelvinator. However, their own-established brands, Reconnect and Wyzr, have achieved modest success.
As most Indian firms and private equity investors have indicated their reluctance to accept minority positions in partnerships, the Chinese organisation is considering allocating 45-48% ownership to a local partner, with 3-6% reserved for Indian staff and regional distributors, whilst maintaining the remainder. The definitive arrangement is expected to take shape in the coming weeks, according to the aforementioned sources.
"Reliance was nowhere in the initial list of suitors who had placed a non-binding bid for the Haier India stake," one of them said. "They entered the race recently and have directly reached Haier headquarters. They are very keen since they want a larger play in their own brand space in electronics like they are doing in FMCG with Campa Cola."
Haier, which markets refrigerators, washing machines, televisions and air-conditioners in India, recorded sales of Rs 8,900 crore in calendar 2024, showing a 33% increase from 2023, when it initiated local operations. The company aims to achieve Rs 11,500 crore in sales for calendar 2025.
Also Read | China’s snub to India’s advantage? Air India in talks to buy 10 Boeing planes rejected by Chinese airlines amid Sino-US tariff war
Currently holding the third position after LG and Samsung, Haier Appliances India is exploring options to reduce its equity by 25% to 51%. The company is considering a structure similar to MG Motors, where an Indian entity would become the principal shareholder.
In response to Donald Trump's tariff policies, which risk making their products costly in the US market, Chinese companies are now more willing to reduce their stakes in favour of Indian entities to maintain their expansion in India.
The company seeks a valuation of $2-2.3 billion, inclusive of a control premium. Since late last year, Haier has engaged Citi to connect with substantial family offices and private equity funds for stake acquisition, according to an ET report.
Last year, Mittal established a consortium with Warburg Pincus. The competition includes several prominent groups: TPG partnering with the Burman family of Dabur, Goldman Sachs with the Amit Jatia family, and GIC of Singapore collaborating with BK Goenka of Welspun, following their initial alliance with Uday Kotak. The partnership between Puneet Dalmia's family office and Bain Capital has withdrawn from consideration.
Reliance has recently joined the competition after initial non-binding proposals were submitted earlier this year. Their consultants have established direct communication with Haier's main office in Qingdao, according to informed sources. A few weeks ago, Mittal visited China to meet with Haier's senior leadership, according to two executives from the industry.
Also Read | Apple tempted by India! In shift away from China, 70-80 million iPhones to be made in India soon amid Trump tariff tensions
Sources told the financial daily that Reliance's retail division would handle the potential purchase. Unlike other contenders, Reliance currently prefers to proceed independently. The company has been developing its electronics business through licensed brands such as BPL and Kelvinator. However, their own-established brands, Reconnect and Wyzr, have achieved modest success.
As most Indian firms and private equity investors have indicated their reluctance to accept minority positions in partnerships, the Chinese organisation is considering allocating 45-48% ownership to a local partner, with 3-6% reserved for Indian staff and regional distributors, whilst maintaining the remainder. The definitive arrangement is expected to take shape in the coming weeks, according to the aforementioned sources.
"Reliance was nowhere in the initial list of suitors who had placed a non-binding bid for the Haier India stake," one of them said. "They entered the race recently and have directly reached Haier headquarters. They are very keen since they want a larger play in their own brand space in electronics like they are doing in FMCG with Campa Cola."
Haier, which markets refrigerators, washing machines, televisions and air-conditioners in India, recorded sales of Rs 8,900 crore in calendar 2024, showing a 33% increase from 2023, when it initiated local operations. The company aims to achieve Rs 11,500 crore in sales for calendar 2025.
Also Read | China’s snub to India’s advantage? Air India in talks to buy 10 Boeing planes rejected by Chinese airlines amid Sino-US tariff war
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