Haier Appliances India is investing an additional Rs 1,000 crore in its Noida campus to increase its air conditioner (AC) production capacity to over four million units. This expansion includes establishing a new air conditioner manufacturing plant, which is expected to be completed by 2026.
As part of this growth, the company plans to begin exports once the expansion is completed.
"We have already invested Rs 1,400 crore in Phase 1. The current investment includes Rs 200 crore for injection moulding, Rs 100 crore for PCB manufacturing, and Rs 700 crore for the AC plant. The PCB manufacturing unit will commence operations in October, while the new AC plant will be operational by 2026," said N.S. Satish, President of Haier India, in an interview with Moneycontrol.
The expansion will generate 3,500 additional jobs, bringing the total workforce at the Noida campus to 7,000.
“...the India market in AC will really boom with a penetration of only 11% with the rising temperatures and environmental changes. We feel that the market will further grow. Last year, we increased our market share by 2%, and we expect to grow it further this year. We have a capacity of 1.5 million AC units at the Noida plant, which will reach 4 million units with the new factory,” he added.
Meanwhile, Haier is also evaluating the possibility of setting up a third manufacturing facility in South India. He said that once the Southern India plant is established, it will focus on kitchen appliances and premium products across categories, leveraging logistical advantages.
Currently, the Noida plant produces air conditioners, select models of semi-automatic washing machines, and single-door refrigerators. The Pune facility manufactures top-load washing machines, double-door refrigerators, and LED TVs.
The manufacturing expansion aligns with the company's fast growth across segments. Satish said,
“There are good indicators for expansion. In the last seven years, we have grown at a CAGR of 27%, with all product categories growing across geographies. This gave us confidence to build the infrastructure to support sustainable growth, hence new investment.”
The executive said Haier, currently third in the appliances league in India after LG and Samsung, aims to become second in the next two to three years.
“We closed at over $1 billion in revenue in the 2024 calendar year, and now we are looking at Rs 11,500 crore. The first two months have been good; we have grown 36%. So, we are on track to achieve the revenue target,” he said, adding the company is growing faster than the market.
The executive also revealed that Haier’s sponsorship of the ongoing ICC Cricket Champions Trophy has yielded results and helped it drive growth.
“We invested heavily there. We never did any campaigns before April, but this time, we changed to have a jump start and go aggressive to take market share from rivals,” he said, adding that Haier will continue its marketing investment during the upcoming Indian Premium League season.
The executive also suggested that the market has not done well in 2025, with some products, including LED TVs, not growing.
“The GDP is growing, and with recently announced income tax benefits, the demand will return, and people will come up with product upgrades. There seems to be a short-term shock. We are growing consistently by 0.1-0.2% each month, which means we are eating into other’s market share since the overall market is not growing,” he said.
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