Haier, JSW Propose ₹1,000 Crore JV for Manufacturing Appliances in India

Haier Group, a major Chinese manufacturer of home appliances and white goods, is reportedly in talks to plan a joint venture with Indian steel and automotive conglomerate JSW Group. The proposed JV would invest ₹1,000 crore in manufacturing plants for appliances in India. As a company based in China, which shares a land border with India, Haier’s investments in the country require government approvals under the provisions of Press Note 3 of 2020. The Press Trust of India has reported that such a proposal has been submitted to the central government and will be considered by an inter-ministerial committee.

Haier entered India in 2004, and set up its first manufacturing plant near Pune in 2007. The company expanded with a new 122-acre industrial park in Noida in 2017, where it primarily manufactures refrigerators along with air conditioners, washing machines, and TVs. Haier lists its production capacity as 20 lakh refrigerators, 10 lakh ACs, and 10 lakh washing machines per year, and products are exported from its India plants to countries in the Middle East and Africa. India is Haier's third-largest market. 

JSW Group entered a JV with China’s SAIC, which owns and operates the MG Motor brand, earlier this year. That deal gives it a presence in the consumer vehicle market. The new entity, JSW MG Motor India, is set to expand production capacity to 3,00,000 vehicles per year. The company also announced it would focus on New Energy Vehicles (NEVs) and set up a new R&D centre to develop localised, connected products and technology. 

Much like the automotive joint venture, JSW and Haier’s partnership could allow the new entity to benefit from JSW’s experience with local manufacturing and distribution, plus its resources in the steel industry. 

According to Data Bridge Market Research, India’s white goods market (residential and commercial) stood at $12.44 billion ($1.04 lakh crores) in 2023 and is expected to grow to $19.09 billion (₹1.6 lakh crores) by 2031, at a 5.5 percent compounded annual growth rate, driven by increasing urbanisation, growing disposable incomes, and a preference for convenience.