China's Haier plans 3rd plant in India, targets Rs 11,500-cr revenue next year

Haier India

Haier Appliances India plans to set up a third manufacturing facility in South and is now zeroing in on the location for the new plant. It will primarily cater to the domestic market and explore export opportunities once it starts operations by 2027.

According to NS Satish, president of the Indian arm of Chinese consumer durables giant Haier, after surpassing $1 billion in revenue in 2024, the company has set an ambitious target to increase its India revenue to Rs 11,500 crore by 2025. “2024 has been one of the best years for us in terms of overall business, with every product category showing strong growth. We have already surpassed the $1-billion revenue mark this year, achieving 35 percent year-on-year growth,” he told Moneycontrol. “Our target for 2025 is Rs 11,500 crore, and we are ready with our product planning for the next year.”

The company follows a January-December financial year format.

Haier is the third-largest in the appliances league in India after LG and Samsung. Globally, India ranks as the third-largest market for Haier Group, following China and the US. The company competes with other major players, including Whirlpool, Havells-owned Lloyd, Godrej Appliances, and Voltas Beko, selling a range of products such as refrigerators, washing machines, televisions, and air conditioners.

Haier is reportedly exploring the sale of an equity stake worth over $1 billion in its Indian operations. Family offices of prominent industrialists and private equity funds are said to be eyeing a majority stake. Satish, however, declined to comment on these discussions.

The company has invested Rs 2,500 crore in India to date and recently announced plans to invest Rs 800 crore to expand its Greater Noida plant. “We had planned a Rs 400-crore investment for phase two, and the factory is now operational. Trial production, including injection moulding and backward integration of sheet metal works, has started. Commercial production is expected to begin soon,” Satish said.

In addition to manufacturing, Haier is investing in training engineers to reduce customer turnaround time for product installation and repair while improving quality at the manufacturing level.

Satish described Haier as a “challenger brand” in both premium and mass-market segments, emphasising the company’s investments in manufacturing, service, and sales infrastructure.

Strategically addressing diverse consumer needs, Haier introduced premium products like three-door refrigerators, 65-inch smart TVs, and 10-kg washers, alongside affordable options such as semi-automatic washing machines and single-door refrigerators. This approach has strengthened its market positioning while optimising operational costs.

“Our market share has increased across every product category, growing consistently by 0.1-0.2 percent each month. While our overall business has performed well, the industry faced challenges, particularly during Diwali,” Satish noted.

The executive also said the rural demand didn't pick up as the company had anticipated but still termed it better than 2023. "The wedding season is on, especially in the Hindi heartland. Let's hope the demand goes up. While the demand hasn't picked up to the extent we expected, it is better than last year."