Haier Group to invest Rs 1,000 Cr in India JV with JSW Group
The proposal of Shandong-based Haier Group has been submitted to the government as it attracts Press Note 3 of 2020, under which all firms in countries that share land borders with India need mandatory government approval.
Chinese appliances manufacturer Haier Group has plans to set up a joint venture with India's JSW Group envisaging a proposed investment of Rs 1,000 crore, sources said.
The proposal of Shandong-based Haier Group has been submitted to the government as it attracts Press Note 3 of 2020, under which all firms in countries that share land borders with India need mandatory government approval.
The source said the proposal was put up before the committee that scrutinises such applications. There is an inter-ministerial committee headed by the Home Secretary to consider applications under the press note.
Countries which share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.
An email query sent to both companies remained unanswered.
Last year, in November, the $24-billion JSW Group signed a JV with China's auto major SAIC Motor to acquire a 35% stake in MG Motor India.
The JV was named JSW MG Motor India Private Ltd.
Around 51% of the company's shares are with Indian entities, including JSW, which has a 35% stake.
Haier Group is operating here through its subsidiary Haier Appliances India, which was established in 2003. Headquartered in Greater Noida, the India unit is a subsidiary of Haier Singapore Investment Holding.
It is one of the leading brands in the home appliances and consumer electronics market and operates two manufacturing units - Pune, Maharashtra and Greater Noida, Uttar Pradesh.
Haier, which has over Rs 8,000 crore business in India, is constantly expanding its manufacturing capacity to meet the growing demand for appliances from rural and smaller towns and the Indian middle class from urban markets with its affordable options.
India is the third largest market for Haier Group globally after China and the US, where it has invested Rs 3,500 crore so far.
It has a consolidated manufacturing capacity to roll out 9 million units annually combined from both plants.
Earlier this year, Haier, which competes in the Indian market with brands such as Samsung, Panasonic, Whirlpool of India, and Bosch besides some homegrown manufacturers such as Godrej Appliances, Bajaj Electricals, Voltas etc, said it has lined up a "huge expansion plan".
Edited by Megha Reddy