Haier aims for $2 billion sales in india in next 3 4 years to invest rs 1 000 cr in manufacturing

Haier aims for $2 billion sales in india in next 3 4 years to invest rs 1 000 cr in manufacturing

Haier Appliances India looks to become a USD 2 billion sales company in the next 3-4 years on the back of a high double-digit growth powered by expansion in product category and channels, according to a top official. The home appliances maker has earmarked an investment of over Rs 1,000 crore between 2024-2028 to set up new AC Production and Injection Molding Units. It has already ploughed in Rs 2,400 crore in its plants at Pune and Greater Noida so far.

With this new plant, Haier India’s capacity would increase to 4 million units per annum from the present 1.5 million units, besides increasing domestic value addition.

‘Currently we have a capacity of 1.5 million. However, the way the AC market is growing here, by 2027 we will have a shortage in capacity. ... The new plant will be 2.5 million units,’ Haier Appliances India President NS Satish told PTI on Sunday.

Haier is also looking to set up a plant in South India and will announce the planned investment soon.

Without sharing any details, he said the investment amount would be ‘similar in size and capacity to what we have currently in the Noida Industrial Park’.

In 2024, Haier reported a 36 per cent growth in revenue at around Rs 8,900 crore, crossing the billion dollar sales mark. For the current year, Satish expects revenue to cross Rs 11,500 crore.

‘And subsequent to that, every year, we are looking around Rs 2,000 to 2,500 crore plus. So we have big plans. And we see a big opportunity in India. When you see the economy GDP, which is doing very well, next is the penetration of the product, which is very low when we compare it to our global counterparts,’ he said.

On when Haier Appliances India would become a USD 2 billion company, Satish replied: ‘In the next three to four years, definitely. We already are a USD 1 billion company. I think in the next three to four years, it will definitely be more than USD 2 billion.’

The company sees a huge opportunity in segments such as air-conditioners, refrigerators, washing machines, TV panels and commercial freezers, as the penetration in India is very low in comparison to the other countries.

India is the fourth largest market for Shandong, China-based Haier Group Corporation and Satish expects it to be among the top three markets globally in the next 4-5 years with a sales revenue of USD 2 billion.

‘India is a very important market. We see a huge opportunity with its demography and economic factors.. .If we touch the USD 2 billion mark, I think we will be in the top three contributors.’

China, North America and ‘Russia and Europe’ are the top three markets for the Haier group.

Like other makers, Haier is also witnessing premiumization happening in the Indian consumer electronics and appliances market. However, Satish said besides premium products, it would also focus on mass products where people are seeking more value from the products.

‘India has two sides of the story. One is looking for more and more premium products, and the ones who are looking for a value for money product. That’s where we manufacture even a single-door refrigerator. And also, recently, we have introduced the four-door, the most premium refrigerators in India, even the air conditioner,’ he said, adding ‘so we see opportunity in both sides, in the entry as well as in the premium segment also.’

However, Haier’s majority of the growth has come from the premium segment last year, which indicates that the premium market has grown with various schemes, which we launched in terms of enhancing affordability like the easy EMI schemes.

‘I think the premium market will definitely grow faster,’ said Satish.

However, when asked whether Haier group has any plans to introduce its global brands in the growing Indian premium market, Satish said: ‘We still have a huge scope for developing Haier products at this point, we would continue to invest in building a Haier brand and Haier product portfolios. At this point, we have not thought about bringing in any global brands.’

Haier Group owns brands including - Haier, Casarte, Leader, GE Appliances, Fisher & Paykel, AQUA and Candy.

It entered India in 2003 by establishing Haier Appliances India. It now has manufacturing facilities in Pune and Greater Noida. It competes with LG Electronics, Samsung, Panasonic, among others, in segments such as refrigerators, AC, washing machines, LED TVs, deep freezers, and microwaves.