Reliance, Mittal, Dabur, And Goldman Sachs Enter Race For Haier India Stake
Mukesh Ambani-led Reliance Industries has joined the crowded race to acquire a stake in Chinese consumer electronics giant Haier's Indian unit.According to The Economic Times, Reliance's advisers have directly reached out to Haier’s headquarters in China with a non-binding offer earlier this year.
The Qingdao-based company is reportedly looking to sell up to 51% of its India business to bring in an Indian partner. Ambani's telecom rival Sunil Mittal has also reportedly visited China to meet Haier’s management.
Reports say Haier has been working with Citi Group since last year to tap large family offices and private equity funds for the stake sale. It is seeking an "MG Motor-like" structure for its India entity, where an Indian company would be the largest shareholder. The company is targeting a valuation of $2–2.3 billion. Haier is currently the third-largest consumer electronics manufacturer in India, after LG Electronics and Samsung.
The ET report noted that Reliance Retail would lead the potential acquisition. The unit already has a presence in India’s consumer electronics market with brands like BPL, Kelvinator, Reconnect, and Wyzer. Last week, Reliance Retail's CFO told analysts that their electronics business grew 30% year-on-year in FY25.
Industry watchers, cited by ET, said that Reliance is keen to strengthen its electronics brand, much like its aggressive push in the FMCG space with Campa Cola. Furthermore, Reliance’s stance on China has reportedly evolved, recognizing that partnerships are essential to scale its new businesses — evident from its recent fast fashion collaboration with Shein, a tie-up once considered unlikely.
As per ET, Mittal has formed a consortium with private equity firm Warburg Pincus to bid for the stake. Meanwhile, the Burman family of Dabur has teamed up with TPG, Amit Jatia’s family has partnered with Goldman Sachs, and BK Goenka has joined hands with GIC Singapore to bid for a significant stake in Haier India.
Last year, Haier India posted Rs 8,900 crore in sales, and this year, it is aiming for Rs 11,500 crore.
The stake sale is also seen as part of Haier's broader strategy to fuel its expansion plans in India. In 2023, the company sought approval for a Rs 1,000 crore foreign direct investment (FDI) proposal, but it is still awaiting clearance. Haier plans to expand its existing plants in Greater Noida and Pune and set up a third greenfield manufacturing facility in southern India, scouting land in Andhra Pradesh and Tamil Nadu. However, since tensions rose between India and China in 2018, the Indian government has tightened scrutiny of investments from neighboring countries under Press Note 3 guidelines, requiring government approval rather than automatic clearance. This move has delayed several Chinese investment proposals, although a few joint ventures, particularly in the electronics components sector, have recently been approved.
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