Sunil Mittal, Warburg Pincus in exclusive talks for Haier India's 49% stake

Both Mittal-Warburg and the Chinese parent firm will hold an equal share and exercise joint control, with the remaining 2 per cent staying with employees

Bharti Airtel founder Sunil Mittal and private equity firm Warburg Pincus have entered into exclusive negotiations with China's home appliance giant Haier to acquire a 49 per cent stake in its Indian unit, reported Moneycontrol on Friday.

 

According to a report by Bloomberg last month, the stake could be valued around $2 billion.

 

"The exclusivity period is on currently and an official announcement on the proposed transaction is likely this month. The deal structure was a bone of contention earlier with many suitors but now the plan is for the incoming Mittal-Warburg Pincus combine to pick up a 49 per cent stake with the Chinese parent expected to also hold 49 percent stake," one of the persons familiar with the negotiations told Moneycontrol.

   

During an exclusivity period, both sides agree not to negotiate an alternative deal with third parties.

 

"The balance 2 percent stake will be with the employees and both parties, the parent and the consortium, will exercise joint control going ahead, keeping board seats and other aspects in mind," the person added.

 

"Haier is a good commodity player, has a strong supply chain and a healthy market share in every category," another person familiar with the matter said, confirming that Mittal will be engaging in the deal via his family office.

 

Meanwhile, another source said that once the new investors come in, Haier’s India unit is likely to go public through an initial public offering (IPO) in the next two years.

 

The development comes after multiple reports over the past few months suggested that Mukesh Ambani’s Reliance Industries Limited (RIL) was also a key contender for acquiring the stake.

 

Haier targets an upwards trajectory

 

Haier, which entered the Indian market in 2004, offers a range of household appliances including refrigerators, air-conditioners, washing machines, and televisions. In 2024, the company recorded a revenue growth of 36 per cent to reach approximately ₹8,900 crore, according to The Economic Times, placing it third in the Indian home appliances market behind Korean electronics giants LG and Samsung.

 

Looking ahead, Haier anticipates revenue will surpass ₹11,500 crore in 2025, company president NS Satish told PTI. He added that the company is targeting an annual increase of ₹2,000 crore to ₹2,500 crore thereafter. "So we have big plans. And we see a big opportunity in India. When you see the economy GDP, which is doing very well, next is the penetration of the product, which is very low when we compare it to our global counterparts,” he added.