The Chinese parent, Haier Group, had initially sought a valuation of around $2 billion (₹17,100 crore), but offers were significantly lower, said one of the persons, asking not to be named as the discussions are private. Haier is now weighing whether to proceed with the deal or wait for improved market conditions, the person added.
As part of the proposed transaction, Haier India employees are expected to acquire a 2 per cent stake, while a public listing is being considered within two years to provide an eventual exit route for the Chinese firm, the people said. “After the deal, the buyer will have to pay a steep brand usage fees and royalties to the Chinese parent, which has dampened the valuation,” said a person close to the development.
Haier, which fully owns the Indian subsidiary, has been exploring a potential exit for several months and even held early-stage discussions with Reliance Industries Ltd, India’s largest conglomerate, according to the people. Emails sent to Haier, Mittal’s office, and Warburg Pincus on Friday went unanswered until the press time.
The proposed deal comes amid a broader trend of Chinese firms paring back their India exposure following geopolitical tensions and growing scrutiny of Chinese investments by India. In March last year, Chinese automaker SAIC Motor agreed to sell a majority stake in its Indian subsidiary MG Motors India to the Sajjan Jindal group. In May, Ant Group exited its investment in Paytm through $246 million worth via block trades. Haier entered India in 2004 and holds a 14 per cent share of the refrigerator market.
Its presence in other categories — including washing machines, televisions, and air conditioners — remains in the single digit.
India’s household appliances market is projected to reach $64.3 billion in 2025, growing at a 7.3 percent CAGR through 2030, according to data from Statista.
 "Sunil Bharti Mittal, billionaire and chairman of Bharti Enterprises Ltd.")