TPG Capital and GIC Join Race to Acquire Stake in Haier Appliances India

Acquire Stake

India: The race to acquire a significant stake in Haier Appliances India Pvt. Ltd is heating up with the entry of private equity firm TPG Capital and Singapore’s sovereign wealth fund GIC. These firms join several Indian family offices in bidding for up to 49% of the company. TPG has partnered with the Burman family (Dabur promoters), while GIC is working with the Goenka family (Welspun Group). Earlier reports indicated that Warburg Pincus has partnered with Bharti Enterprises, and Bain Capital has joined Puneet Dalmia’s family office to acquire at least 51% of the company. Established in India in 2003, Haier Appliances India is a subsidiary of Haier Singapore Investment Holding Pte. Ltd and is India’s third-largest consumer durables maker after LG and Samsung. The company, valued at around $2 billion, offers products such as refrigerators, air conditioners, washing machines, LED TVs, water heaters, and kitchen appliances.

The potential sale is driven by regulatory challenges following India's 2020 restrictions on foreign direct investment from neighboring countries under Press Note 3. To navigate these hurdles, Haier is seeking an Indian investor to localize its ownership. In December, reports indicated that the company was looking for a minority partner with a 20-49% stake, with Citigroup Capital Markets advising on the deal. The first bidding round has concluded, with due diligence currently underway. Haier also plans to invest over Rs 1,000 crore (USD 120 million) between 2024 and 2028 to expand its manufacturing capacity, adding AC production and injection moulding units. With Rs 2,400 crore (USD 288 million) already invested in its Pune and Greater Noida plants, Haier is also considering a future listing on Indian stock exchanges, aligning with the strategies of competitors LG and Samsung.

Source: Global Investor