Haier Appliances India, the wholly owned subsidiary of China-based global consumer durable firm Haier Group Corp (HGC), is planning to acquire Indian brands.
• The Chinese firm is in talks to acquire a spectrum brand
• Haier India plans to achieve Rs 550 crore turnover in the financial year 2009
• The company plans to increase Planet Haier stores from 23 to 25 this year
“We are looking at acquiring durable brands,” Pranay Dhabhai, whole-time director and COO, Haier Appliances (India) said. “Right now, valuation, discussion and diligence process are underway to acquire a spectrum brand,” he added.
In line with its expansion plans, the company launched a new range of air conditioner comprising 16 split AC models and nine window AC models along with nine new refrigerator models in frost-free and direct-cool categories.
In 2007, Haier entered into a joint venture with Sanyo of Japan to sell refrigerators under the Sanyo brand in Asia.
In the past, two other Chinese durable goods firms, Lenovo and TCL, lost their money after acquiring western brands (IBM in PCs and RCA in electronics, respectively). However, Haier is positive. The company is eyeing US appliance brands to help increase the global footprint.
Haier India, which clocked Rs 325 crore turnover in 2007, plans to achieve Rs 550 crore turnover in the financial year 2009. Haier India, however, has been able to garner 2 per cent of the Rs 25,000-crore Indian durable market since its debut in 2004.
To establish its hold, the company is trying to replicate its international business strategy of acquiring brands and facilities to drive growth. Haier’s new approach includes consolidating its dealership and distribution network, product upgradation and entering new segments.
“We hope to increase the Planet Haier stores from 23 to 25 this year,” Dhabhai added.
Haier had acquired Anchor Daewoo’s appliance business for an undisclosed amount last year.The deal, which included a refrigerator manufacturing unit at Ranjangaon in Pune, was the first for Haier India.
The company manufactures washing machines and CTVs at Dehradun and air conditioners at Haridwar by way of third-party manufacturing. The company imports LCD and Plasma TVs and high-end spilt ACs.
Haier is planning to make India a manufacturing and exporting hub in the future. “We are planning to make India a manufacturing hub to export to East Europe, West Asia, Africa and Sri Lanka ,” Dhabhai said.
The company plans to increase the current capacity of its refrigerator plant at Pune from 3.5 lakh units to 1 million units this year. After expanding the capacity, 25 per cent of the units will be exported.
The company will also enter the commercial cooling and refrigeration space this year. “We are looking at launching a range of commercial freezers and coolers along with water heaters this year,” Dhabhai said.