Haier plans to strengthen presence here through buys
The $16.2 billion group plans to acquire more companies in India to increase its share of the country’s consumer electronics market from the existing 2%.
By Tapash Talukdar, TNN |
QINGDAO: Haier, the world’s fourth-biggest white goods manufacturer, is strengthening its presence in India. The $16.2 billion group plans to acquire more companies in India to increase its share of the country’s consumer electronics market from the existing 2%. The company is also eyeing a few large US appliance brands that will also help it increase its global footprint.
“We need to grow in India in a big way in the forthcoming years. The potential in India is enormous as rural homes are getting electrified and consumer spending is also on the rise,” says Haier Group MD overseas business division Diao Yungfeng. Last year, Haier Appliances India, a wholly-owned subsidiary of Haier Group, acquired the appliance business of Anchor Daewoo which included a refrigerator manufacturing unit near Pune. The company now says it is willing to pump another Rs 150 crore in India for more acquisitions.
The Rs 325-crore Haier India has charted out new strategies for the Indian market with the help of a renowned global consultancy. In the short term, it plans to cross the Rs 500-crore turnover mark in fiscal 2009. Haier’s new strategy includes strengthening its dealership network, product upgradation and targeting the small-segment markets.
The company plans to launch energy saving products apart from economical appliances in the Indian market. Following the Anchor Daewoo acquisition, Haier has invested in building capacity and plans to produce 3.3 lakh refrigerators this year. With this, Haier will also be in a position to export to neighbouring countries like Pakistan, Sri Lanka and others.
The group enjoys nearly a third of the Chinese market and its overseas business is growing 65% CAGR. The company is a major sponsor for the Beijing Olympics later this year, and is expecting a growth of 20% by next fiscal. “Our revenue may see a growth rate of 20% with this sponsorship of the event,” says Yungfeng.
“We need to grow in India in a big way in the forthcoming years. The potential in India is enormous as rural homes are getting electrified and consumer spending is also on the rise,” says Haier Group MD overseas business division Diao Yungfeng. Last year, Haier Appliances India, a wholly-owned subsidiary of Haier Group, acquired the appliance business of Anchor Daewoo which included a refrigerator manufacturing unit near Pune. The company now says it is willing to pump another Rs 150 crore in India for more acquisitions.
The Rs 325-crore Haier India has charted out new strategies for the Indian market with the help of a renowned global consultancy. In the short term, it plans to cross the Rs 500-crore turnover mark in fiscal 2009. Haier’s new strategy includes strengthening its dealership network, product upgradation and targeting the small-segment markets.
The company plans to launch energy saving products apart from economical appliances in the Indian market. Following the Anchor Daewoo acquisition, Haier has invested in building capacity and plans to produce 3.3 lakh refrigerators this year. With this, Haier will also be in a position to export to neighbouring countries like Pakistan, Sri Lanka and others.
The group enjoys nearly a third of the Chinese market and its overseas business is growing 65% CAGR. The company is a major sponsor for the Beijing Olympics later this year, and is expecting a growth of 20% by next fiscal. “Our revenue may see a growth rate of 20% with this sponsorship of the event,” says Yungfeng.
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