Haier wants Rs 1,000 crore boost to set up third factory, files Press Note 3: Report

Haier Appliances India has reportedly filed a Press Note 3 application with the Department for Promotion of Industry and Internal Trade (DPIIT) to obtain approval for a fresh capital infusion of Rs 1,000 crore from its parent company. The regulatory filing, submitted to the Registrar of Companies (RoC), confirms the application is currently in process, though the company has not provided details regarding the specific purpose of the capital deployment. Haier India’s holding company is Haier Singapore Investment Holding Pte. Ltd.

According to a report in The Economic Times, Haier’s parent wants to pump in money into the Indian entity to set up a third factory in India in the southern region. Haier currently operates two manufacturing plants in Greater Noida and Pune.

Under India’s foreign direct investment rules, companies whose parent entities are based in countries sharing land borders with India, including China, must receive Press Note 3 approval before any such investment can proceed. The capital infusion proposal aligns with these requirements, which have become standard for industry participants with parent companies in China.

Haier Appliances India is also engaged in advanced negotiations with Bharti Group for the sale of a 49 per cent stake in Haier India, while the Chinese entity would retain a 49 per cent interest and the remaining 2 per cent would be allocated to Indian company employees. Reports indicate that transaction terms have been finalised, pending approval from both Indian and Chinese regulators.

Recent RoC filings indicate that Haier India has overtaken Whirlpool India by sales for the financial year 2024-25, establishing itself as the third largest consumer electronics company in India, following LG and Samsung.

Haier India reported sales of Rs 8,234 crore for FY25, a 30% year-on-year increase, and net profit rose by over 200% to Rs 480 crore. In comparison, Whirlpool India’s FY25 sales totalled Rs 7,420 crore, with net profit at Rs 313 crore.

Haier, in its filing, reiterated its strategic focus, citing "its tradition of being cost effective by responding faster to the changing requirements of the market by expanding its customers and distribution network and by further strengthening its already strong capital base".