Bharti Enterprises, Warburg Pincus to acquire 49% stake in Haier India

Sunil Bharti Mittal-led conglomerate Bharti Enterprises and private equity firm Warburg Pincus will collectively acquire a 49 per cent stake in Haier Appliances India, the local unit of China’s Shandong-based Haier group, for an undisclosed amount.

Photograph: Aly Song/Reuters

The transaction, according to industry sources, values the company at about Rs 15,000 crore.

The deal marks the second instance of a Chinese major diluting a significant stake in its Indian operations, following Sajjan Jindal’s JSW group acquiring a shareholding in MG Motor India, a unit of SAIC Motor.

The Haier group will continue to hold a 49 per cent stake in its India unit, while the balance 2 per cent will be owned by Haier India’s management team, according to a joint statement.

The statement did not disclose the individual shareholding of Bharti Enterprises and Warburg Pincus.

Bharti Enterprises may raise funds for the transaction through the issuance of non-convertible debentures, sources said.

It did not respond to queries from Business Standard until the time of going to press.

“This strategic collaboration will accelerate Haier’s growth and expansion in India by bringing together and leveraging the company’s global excellence in innovation, Bharti’s esteemed standing and resultant networks, and Warburg Pincus’ strong track record of scaling brands into industry leaders,” the statement said.

The partnership, according to the statement, will also support Haier India’s “Made in India, Made for India” strategy by increasing local sourcing, expanding manufacturing capacity, driving product innovation and accelerating market penetration.

The capital infusion is expected to enhance Haier India’s competitiveness across the value chain.

“The collaboration with Bharti Enterprises and Warburg Pincus marks an important milestone in Haier India’s development journey,” Haier said in the statement.

The strategic partnership fully embodies Haier’s approach of “serving globalisation with global capabilities and advancing globalisation through localisation.”

The deal further diversifies Bharti Enterprises’ portfolio beyond its core telecom business led by Bharti Airtel.

The group also has interests in telecom towers through Indus Towers, satellite communications via Eutelsat-OneWeb, insurance through its Bharti AXA Life Insurance joint venture, and real estate and hospitality through Bharti Realty.

Bharti Enterprises said it was pleased to collaborate again with Warburg Pincus and to partner with Haier to support the next phase of Haier India’s growth.

“The company looks forward to playing a significant role in the evolving consumer durables industry and leveraging the collective strengths of all parties to meet the needs of Indian consumers,” it said.

“Bharti is confident that Haier India will further consolidate its standing as a leading brand in India, powered by global innovations, enhanced customer services and a best-in-class experience.”

Warburg Pincus has been a long-standing partner of the Bharti Group, having invested twice in Airtel over the past two decades, as well as in the group’s direct-to-home television business and its Africa venture.

In a recent interview with Business Standard, N S Satish, president, Haier Appliances India, said that the company expects revenue to grow 25 per cent in 2025 to about Rs 11,000 crore, supported in part by strong television sales following a cut in goods and services tax.

The company currently holds an 8 per cent share of the Indian air conditioner and washing machine markets and aims to raise its AC market share to 17 per cent by 2030.

The company has a 14 per cent share of the refrigerator segment and about 9 per cent of the LED television market. In commercial refrigeration, its market share is close to 26 per cent.

In the statement, Haier Appliances India said it is among the top three consumer durables companies in the country, with a portfolio spanning air conditioners, refrigerators, televisions, washing machines and kitchen appliances.

Over the past seven years, the company has recorded a compound annual growth rate of about 25 per cent in India, among the highest in the industry, driven by strong performance across product categories and geographies.

“By combining global innovation with local insights and execution, the partnership will strengthen Haier India’s leadership position in the rapidly growing Indian consumer durables segment,” it added.