Sunil Mittal’s Family Office Ends Talks to Acquire Stake in Haier India

After failing to agree on a valuation, the family office of billionaire Sunil Mittal has pulled out of talks to buy a 49% share in Haier Appliances (India). The Chinese parent business of Haier India, Haier Group, was looking for a valuation of roughly $2 billion (INR 17,100 crore).

However, various media reports claimed that the bids the company received were much lower, with offers of about $600 million (INR 5,280 cr)—much less than the ask. Owing to these developments and due to a decline in valuation, Korean electronics powerhouse LG Electronics India may reduce the size of its initial public offering (IPO) from INR 15,000 crore to perhaps INR 12,000-13,000 crore, according to a source. Instead of selling a 15% interest as originally planned, the Korean corporation may now sell less than 15%.

Chinese Companies Scaling Back in India

According to media sources, Haier India may also think about going public, but no decision has been made yet. The Chinese business has been considering an exit for a number of months, and it has even had initial discussions with the biggest conglomerate in India, Reliance Industries Ltd (RIL). The proposed transaction was a part of a larger trend of Chinese companies reducing their exposure to India.

The Sajjan Jindal group agreed to purchase the majority of MG Motor India from Chinese automaker SAIC Motor last year. The Ant company used block transactions to withdraw its $246 million investment in Paytm in May.

Haier’s Journey in India

Since its 2004 entry into the Indian market, Haier has had a 14% market share in the refrigerator industry. It is still seen in single digits in air conditioners, televisions, and washing machines.

Its net sales in the calendar year 2023 (CY23) were INR 6,305.5 crore, up from INR 5,429 crore in 2022, and its net profit was INR 155.6 crore, up from a loss of INR 63.5 crore in 2022. The global statistics and business intelligence firm Statista projects that the Indian household appliances market will reach $64.3 billion in 2025 and increase at a 7.3% cumulative annual growth rate (CAGR) through 2030.