Sunil Mittal Eyes Haier India Stake; Likely in Talks to Acquire 49%

Indian telecom tycoon Sunil Mittal, in collaboration with US-based private equity firm Warburg Pincus, has submitted a bid to acquire a 49% stake in Haier India. According to a report by Business Standard, the proposed investment values the company at ₹6,000 crore (approx. USD 720 million), significantly below Haier’s earlier expectation of a USD 2 billion valuation.

Let’s explore the details of the bid and what it signals for India’s appliance sector.

Haier India: A Strategic Acquisition Target

Haier India, a subsidiary of the Chinese electronics giant Haier, currently runs 3 manufacturing facilities across the country. The plants produce a wide range of home appliances, including air conditioners, refrigerators, and washing machines a portfolio that makes it an attractive target for investors looking to enter or expand in India’s fast-growing consumer durables market.

While Haier initially aimed for a much higher valuation, current market dynamics led to lower bids. The company is now assessing whether to go ahead with the deal or hold off in hopes of better market conditions.

Mittal’s Diversification Beyond Telecom

Sunil Mittal, the founder and chairman of Bharti Airtel, continues to diversify beyond the telecom sector. Known for building one of India’s largest telecom firms, Mittal has increasingly shown interest in other high-growth sectors. This proposed deal marks his possible entry into consumer appliances, a space currently dominated by a few key players in India.

As of July 7, Mittal’s net worth stood at USD 15.1 billion, according to Forbes. Bharti Airtel, his flagship company, has a market capitalisation of ₹12.18 lakh crore, with its stock closing at ₹2,029.50 earlier this week.

Past Deal Talks and the Road Ahead

As per the report, before the current bid from Mittal and Warburg Pincus, Haier India was reportedly in preliminary discussions with Reliance Industries, led by Mukesh Ambani. However, no deal materialised.

Read More: EPACK Durable Begins Washing Machine Production in Andhra Pradesh.

Conclusion

Sunil Mittal’s bid for Haier India underscores a growing interest among Indian industrialists to expand into high-demand sectors. For Haier, a tie-up with a well-established Indian partner could offer deep market insights and local strength. All eyes are now on whether the deal materialises in the near term.

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