Bharti Enterprises and Warburg Pincus have announced strategic investment in Higher India. Haier India is a subsidiary of China’s Haier Group. Sunil Mittal-led Bharti Enterprises and PE firm Warburg Pincus made this announcement on December 24. After this transaction, the combined stake of Bharti Enterprises and Warburg Pincus in Haier India will increase to 49 percent.
Haier Group will retain 49 percent stake in its Indian subsidiary Haier India. The remaining 2 percent stake will be with the employees. News agency Reuters has given this news. The companies did not disclose the value of the deal. Information about the valuation at which this deal is being done is also not available.
The Economic Times quoted sources as saying that the value of Higher India could be Rs 15,000 crore. Haier India manufactures air conditioners, refrigerators, televisions, washing machines and kitchen appliances. It has two plants, which are in Pune and Noida. Both companies have said in a joint statement, “This strategic collaboration will accelerate Haier’s growth. The company’s business will expand in India.”
The statement also said that Haier India will benefit from Bharti’s strong position and extensive networks and track record of making Warburg Pincus brands industry leaders. This investment will increase Haier India’s ability to compete with other companies in the entire value chain. Haier India competes with big companies like LG Electronics, Samsung. LG and Samsung have a strong presence in the Indian market.
Both companies have said, “The growth of the consumer appliances market in India is strong. This is due to the increasing income of the people, changing lifestyle and increasing accessibility of consumer appliances. Haier India is currently included in the top 3 consumer durables companies of India. Its product portfolio is strong, which includes air conditioners, refrigerators, televisions, washing machines and kitchen appliances. In the last 7 years The CAGR of the company has been around 25 percent.”