Chinese home appliances company Haier is searching for a strategic partner in India to strengthen its local operations. The company aims to dilute between 25% and up to 49% of its shareholding, depending on the negotiations with a suitable Indian partner. Haier’s move is being facilitated by its global advisor, Citi, which is currently in talks with Indian firms that do not have competing interests in the appliances industry.
This potential partnership is similar to the approach used by MG Motor, which tied up with JSW Group for its Indian operations. Haier is exploring joint control arrangements, where the Indian partner could become the single largest shareholder. This collaboration strategy reflects the growing need for global companies to align with Indian businesses to navigate regulatory requirements.
The decision comes amid increased scrutiny of Chinese companies by Indian regulators under Press Note 3, which monitors foreign direct investments from neighbouring countries. Haier Appliances India, which ranks third in India’s home appliances market behind LG and Samsung, is looking to strengthen its foothold in the competitive Indian market. This partnership strategy aims to help Haier better manage regulatory challenges while expanding its presence in the country.
