Bharti Airtel Chairman Sunit Mittal’s family office has ended the discussions with Haier Appliances India for a stake purchase after both companies failed to reach any decision on the valuation front. This is as per a Business Standard report
The Business Standard report elaborated that the Chinese company Haier Group and Sunil Mittal’s family office were in discussion for the sale of a 49 per cent stake in Haier Appliances India.
The report stated that Haier Group received much lower bids for the proposed 49 per cent stake at a lower valuation than the company’s asking price. Haier Group is looking for a Rs 17,000 crore ($2 billion) valuation of Haier Appliances India, putting the 49 per cent stake price at about Rs 8,379 crore. However, as per the report, the company received a Rs 5,280 crore ($600 million) bid for the 49 per cent stake
What’s next for Haier Appliances India?
Haier Group, the parent company of Haier Appliances India, has for some time been looking to cut down its ownership stake in the company. Besides Sunil Mittal’s family office, the company has also been in talks with other Indian mega-companies. However, nothing concrete has come out of the preliminary discussions. Haier Appliances India was in discussions with Reliance Industries for a stake sale, says the report.
As the discussion with the private companies remains ineffectual, Haier Group may consider a public listing of Haier India, the report adds. The Chinese appliance major hasn’t taken a final decision on the public listing aspect.
Haier India business
The Haier Group entered India’s appliance market in 2004. The company has managed to increase its influence in the refrigerator segment as it gains a 14 per cent market share, but its air conditioners, washing machines and television business still struggle to capture double-digit market share.
In recent years, Haier Appliances India has seen encouraging revenue and profitability growth. The company’s revenue has grown to Rs 6,305 crore in the calendar year 2023, from Rs 5,429 crore in the previous calendar year.
The company’s profit has also grown to Rs 155 crore in 2023 from a loss of Rs 63 crore in 2022.