Sunil Mittal's family office walks away from Haier India stake-buy talks

Sunil Mittal's family office pulled out of Haier India stake talks as valuation gap widened; Haier may consider IPO as Chinese firms trim India presence

Billionaire Sunil Mittal’s family office has withdrawn from discussions to acquire a 49 per cent stake in Haier Appliances (India) after failing to reach an agreement on valuation.

 

Haier India’s Chinese parent company Haier group was seeking a valuation of about $2 billion (₹17,100 crore). However, the bids it received were significantly lower, with offers around $600 million (₹5,280 cr) — well below the ask — according to two people familiar with the matter, who requested anonymity as the talks were private.

 

Korean electronics giant LG Electronics India may trim the size of its initial public offering (IPO) from ₹15,000 crore to around ₹12,000-13,000 crore as valuation took a dip, a source said. The Korean company may now sell less than 15 per cent stake compared to 15 per cent planned earlier.

 

Both the Bharti group and the Haier group did not respond to emailed queries on the matter sent on Tuesday.

 

Sources added that Haier India may also consider a public listing, although no final decision has been taken. The Chinese company has been exploring a potential exit for several months now, and had even held preliminary talks with Reliance Industries Ltd (RIL), India’s largest conglomerate. 

 

The proposed deal was part of a broader trend of Chinese firms trimming their India exposure. Last year, Chinese automaker SAIC Motor agreed to sell a majority stake in MG Motor India to the Sajjan Jindal group. In May, the Ant group exited its $246 million investment in Paytm through block trades.

 

Haier entered the Indian market in 2004 and currently commands a 14 per cent share of the refrigerator segment. Its presence in washing machines, televisions, and air conditioners remains in the single digits.

 

In calendar year 2023 (CY23), its net profit stood at ₹155.6 crore, compared to a loss of ₹63.5 crore in 2022, while its net sales stood at ₹6,305.5 crore in CY23, compared to ₹5,429 crore in CY22.

 

India’s household appliances market is projected to reach $64.3 billion in 2025, expanding at a 7.3 per cent compound annual growth rate (CAGR) through 2030, according to Statista, a global data and business intelligence company.