Private equity major Warburg Pincus and Bharti Airtel founder Sunil Mittal have jointly submitted a $720m bid for a 49% stake in Haier India, according to a report by Reuters citing Business Standard.
The proposed investment would value the Indian arm of Chinese consumer electronics group Haier at approximately $1.47bn – below the initial $2bn valuation target set by the parent company. The bid underscores ongoing investor interest in India’s fast-growing consumer durables sector, despite valuation headwinds.
The deal structure may include a 2% equity grant to Haier India employees, and plans are reportedly in place for a public market listing within two years, providing a potential exit pathway for Haier Group, which currently holds 100% ownership of the Indian business.
Valuation discussions have been impacted by concerns around brand usage fees and royalty payments to the Chinese parent, according to the report. Warburg Pincus declined to comment, while Haier and Mittal did not respond to media queries.
Haier India operates three manufacturing plants across the country, producing appliances including air conditioners, refrigerators, and washing machines. The company had previously explored strategic options, including early-stage talks with Reliance Industries.
