However, the company has not yet identified the location of the R&D centre but it is likely to come up somewhere in north India, according to Haier Appliances president & CEO TK Banerjee.
Speaking to FE, Mr Banerjee said the company feels that there is a distinct need to come out with India-centric products to create a niche for itself in the highly competitive consumer home appliances market in India. "R&D unit in India is a top priority for us," he said.
The Haier Group, which is based in the Quingdao region of China and has reported a turnover of $9.2 billion in 2003-04, so far has 18 R&D centres across the world.
To make a mark in the Indian consumers mind, Haier has also decided to set up a series of customer service centres in the country.
"We will establish a series of service centres before we actually set up a manufacturing base in India," Mr Banerjee said.