Haier Appliances India Aims For $2 Billion In Sales By 2028

Haier Appliances India has set ambitious goals to achieve USD 2 billion in sales over the next 3-4 years, driven by strong double-digit growth and expansion in both product categories and distribution channels.

The company is investing significantly in expanding its production capacity, including a new AC production facility and injection molding units, as part of its efforts to strengthen its presence in India’s home appliances market.

Major Investment In New Plants

Haier has earmarked over Rs 1,000 crore for investments between 2024 and 2028 to establish a new AC production facility and injection molding units. This comes after the company has already invested Rs 2,400 crore in its existing plants in Pune and Greater Noida. The new investments will increase Haier India’s production capacity from 1.5 million units to 4 million units per year, boosting its domestic value addition significantly.

NS Satish, President of Haier Appliances India, confirmed that with the growing demand for air conditioners, the new plant will help address expected capacity shortages by 2027. “We will expand to 2.5 million units at the new plant, which will support our growth in the coming years,” Satish told PTI on Sunday.

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In addition to the new AC plant, Haier plans to establish another production facility in South India. Although specific details are yet to be revealed, Satish mentioned that the investment would match the scale and capacity of their current Noida facility.

Strong Financial Growth And Future Projections

Haier has already made impressive strides in the Indian market. In 2024, the company reported a 36% growth in revenue, reaching approximately Rs 8,900 crore, marking the milestone of crossing the USD 1 billion sales mark. Satish anticipates that this revenue will grow to Rs 11,500 crore in the current year, with further increases of Rs 2,000-2,500 crore annually in the following years.

Satish highlighted the potential for continued growth, citing India’s strong GDP performance and the relatively low penetration of consumer appliances compared to global counterparts. “With these factors, we see a huge opportunity in India,” he said. “In the next three to four years, we definitely see Haier crossing the USD 2 billion mark.”

Expansion In Key Product Segments

Haier Appliances India sees substantial growth potential in several key product categories, including air conditioners, refrigerators, washing machines, TV panels, and commercial freezers. Despite India’s current low penetration rates for these products compared to global markets, Haier is positioning itself to capitalize on these opportunities.

India is currently Haier Group’s fourth-largest market, and Satish expects it to move into the top three global markets within the next 4-5 years, with projected sales of USD 2 billion. “India is a very important market for us, with tremendous potential driven by its demographics and economic factors,” Satish explained. “If we reach the USD 2 billion mark, India will be one of our top three markets.”

Catering To Both Premium And Value Segments

Haier has also noticed a shift towards premiumization in the Indian consumer electronics and appliances market. While the company is focusing on both premium and value-for-money segments, Satish emphasized Haier’s flexibility in meeting the needs of diverse Indian consumers. “India has two sides – one is looking for premium products, while others are more focused on value-for-money options,” he noted.

The company’s strategy includes manufacturing both entry-level products like single-door refrigerators and premium offerings like four-door refrigerators and high-end air conditioners. Haier has seen most of its recent growth come from the premium segment, bolstered by schemes like easy EMI options that have made higher-end products more affordable for Indian consumers.

Future Plans And Brand Focus

Despite the potential for introducing global brands in India, Satish stated that Haier remains focused on expanding its own brand presence in the country. “We still see a huge opportunity to develop and build the Haier brand further,” he said. “At this point, we have not considered introducing global brands.”

Haier Group, which owns a portfolio of brands including Casarte, Leader, GE Appliances, Fisher & Paykel, AQUA, and Candy, is prioritizing growth through Haier-branded products in the Indian market.

Competitors And Market Landscape

Since entering India in 2003, Haier has expanded its footprint with manufacturing facilities in Pune and Greater Noida. The company competes with major players like LG Electronics, Samsung, and Panasonic in various product categories, including refrigerators, air conditioners, washing machines, LED TVs, deep freezers, and microwaves.

Haier’s ambitious expansion plans, coupled with its ongoing investments in production capacity and strategic product offerings, position it to become a major player in India’s rapidly growing home appliances market.