Mukesh Ambani ’s Reliance Industries Ltd (RIL) has reportedly joined as a key contender for a significant stake in the Indian operations of Chinese electronics giant Haier , which is seeking a local strategic partner to bolster its presence in India. According to a report in Economic Times, citing sources, the move pits RIL against a consortium that includes Sunil Mittal of the Bharti Group , mirroring their competition in India's telecommunications sector.
Haier Appliances India, the third-largest player behind LG and Samsung, is said to be considering diluting 25-51% equity, potentially adopting a structure similar to MG Motors, where an Indian entity becomes the largest shareholder. The company, advised by Citi since late 2023, is targeting a $2-2.3 billion valuation, including a control premium. Other contenders include TPG with the Burman family, Goldman Sachs with the Jatia family, and GIC with Welspun’s BK Goenka. The Dalmia Bharat-Bain Capital group is said to have withdrawn from the acquisition bid.
Trump Tariffs impact and more
Chinese companies, facing U.S. tariff pressures under Donald Trump, are increasingly open to diluting stakes to Indian partners to expand in India. Reliance, which entered the race after initial non-binding offers, has approached Haier’s Qingdao headquarters directly, with its retail unit likely leading the potential acquisition. Unlike competitors, RIL prefers to go solo, leveraging its electronics brands like BPL, Kelvinator, Reconnect, and Wyzr, though the latter two have seen limited success.
Sources indicate Haier may dilute 45-48% equity to a local partner, with 3-6% allocated for Indian employees and distributors, retaining the rest. The deal structure is expected to finalize soon. “Reliance was a late entrant but is keen to expand its own-brand electronics play, like its FMCG push with Campa Cola,” a source told ET.
Haier’s Rs 1,000 crore FDI proposal still awaits clearance
Haier, with Rs 8,900 crore in 2024 sales (up 33% from 2023), aims for Rs 11,500 crore in 2025. It competes with Whirlpool, Lloyd, Godrej, and Voltas Beko in India. Expansion plans, including new plants in Greater Noida, Pune, and a proposed southern facility, are stalled by India’s Press Note 3 norms, which require government approval for Chinese investments. Haier’s 2023 Rs 1,000 crore FDI proposal awaits clearance.
The U.S.-China tariff war and India’s cautious stance on Chinese FDI have delayed the deal, though joint ventures with minority Chinese stakes and technology transfers are gaining traction. Reliance is reportedly using LG Electronics’ delayed IPO to negotiate a lower valuation. Merger Markets first reported RIL’s initial bid.
A veteran observer noted RIL’s shifting stance on Chinese partnerships, driven by its new energy and fast-fashion ventures, like its tie-up with Chinese ecommerce giant Shein. Reliance Retail CFO Dinesh Taluja recently highlighted a 30% growth in its own-brand electronics and a 60% increase in its merchant base in FY25, per ET.
Haier Appliances India, the third-largest player behind LG and Samsung, is said to be considering diluting 25-51% equity, potentially adopting a structure similar to MG Motors, where an Indian entity becomes the largest shareholder. The company, advised by Citi since late 2023, is targeting a $2-2.3 billion valuation, including a control premium. Other contenders include TPG with the Burman family, Goldman Sachs with the Jatia family, and GIC with Welspun’s BK Goenka. The Dalmia Bharat-Bain Capital group is said to have withdrawn from the acquisition bid.
Trump Tariffs impact and more
Chinese companies, facing U.S. tariff pressures under Donald Trump, are increasingly open to diluting stakes to Indian partners to expand in India. Reliance, which entered the race after initial non-binding offers, has approached Haier’s Qingdao headquarters directly, with its retail unit likely leading the potential acquisition. Unlike competitors, RIL prefers to go solo, leveraging its electronics brands like BPL, Kelvinator, Reconnect, and Wyzr, though the latter two have seen limited success.
Sources indicate Haier may dilute 45-48% equity to a local partner, with 3-6% allocated for Indian employees and distributors, retaining the rest. The deal structure is expected to finalize soon. “Reliance was a late entrant but is keen to expand its own-brand electronics play, like its FMCG push with Campa Cola,” a source told ET.
Haier’s Rs 1,000 crore FDI proposal still awaits clearance
Haier, with Rs 8,900 crore in 2024 sales (up 33% from 2023), aims for Rs 11,500 crore in 2025. It competes with Whirlpool, Lloyd, Godrej, and Voltas Beko in India. Expansion plans, including new plants in Greater Noida, Pune, and a proposed southern facility, are stalled by India’s Press Note 3 norms, which require government approval for Chinese investments. Haier’s 2023 Rs 1,000 crore FDI proposal awaits clearance.
The U.S.-China tariff war and India’s cautious stance on Chinese FDI have delayed the deal, though joint ventures with minority Chinese stakes and technology transfers are gaining traction. Reliance is reportedly using LG Electronics’ delayed IPO to negotiate a lower valuation. Merger Markets first reported RIL’s initial bid.
A veteran observer noted RIL’s shifting stance on Chinese partnerships, driven by its new energy and fast-fashion ventures, like its tie-up with Chinese ecommerce giant Shein. Reliance Retail CFO Dinesh Taluja recently highlighted a 30% growth in its own-brand electronics and a 60% increase in its merchant base in FY25, per ET.
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