JSW Group eyes JV with Haier for white goods venture

Haier Group had submitted a proposal to the Govt for investing ₹1,000 crore to set up manufacturing facilities in joint venture with JSW Group [View in browser]( [See all newsletters]( 05 November 2024 JSW Group eyes JV with Haier for white goods venture After forging a joint venture with MG Motors to enter the auto sector, Sajjan Jindal-led JSW Group is in talks with another Chinese company, Haier Group, for a foray into the electronics space. The Shandong-based Haier Group has not been able to tap the full potential of the Indian market due to prolong delay in getting Government’s approvals for fresh investment. The Haier Group investments are covered under Press Note 3 of 2020 which mandates that an entity of a country sharing land border with India or where the beneficial owner of an investment is an entity of such country sharing border such as Pakistan, Afghanistan, China, Nepal, Bhutan, Myanmar and Bangladesh can invest only with prior approval of Government. An inter-ministerial committee headed by the Home Secretary will consider applications submitted under the Press Note 3. Haier Group had submitted a proposal to the Government for investing ₹1,000 crore to set up manufacturing facilities in joint venture with JSW Group, said sources. The third-largest appliances company in India after LG and Samsung, Haier Group is also willing to part-away majority stake to JSW Group, sources said. While Haier declined to comment on the development, an email sent to JSW Group remained unanswered. Early this year, JSW Group along with a group of investors picked up 51 per cent stake for ₹5,000 crore in MG Motor India from Chinese auto major SAIC Motor. The investment marked JSW Group venture into automobile space. MG Motor India will use the fund to expand capacity to 3 lakh units per annum from 1 lakh units. White goods demand up Headquartered in Noida, Haier Group operates in India through its Singapore subsidiary which owns Haier Appliances India. Established in 2003, it has emerged as one of the leading brands in the home appliances and consumer electronics market and has two manufacturing units — Pune, Maharashtra and Greater Noida, Uttar Pradesh. With the business interest of ₹8,000 crore, India is the third largest market for Haier Group after China and the US and has consolidated manufacturing capacity to 9 million units annually. With the restrictions on fresh investment, Haier finds it difficult to compete with homegrown manufacturers such as Voltas, Bajaj Electricals, Godrej Appliances and Havells India, besides global brands such as Samsung, Panasonic, Whirlpool and Bosch. White goods manufacturing companies have been setting up factories in rural areas to meet the growing demand from smaller cities and improve margins. Interestingly, JSW group company JSW Steel is one of the largest suppliers for leading white goods manufacturers. Incidentally, the latest Economic Survey has urged the Government to allow Chinese companies to invest in India to bridge the yawning trade deficit. India has to decide whether it has to rely solely on Chinese imports or allow Chinese investments into the country. Stating that the world cannot completely look past China while pursuing China plus one strategy, the report said that India has to either integrate into China’s supply chain or promote FDI from China. Boosting FDI from China will also be beneficial as it is India’s top import partner and India’s trade deficit with China has been growing steadily. You Might Also Like [Shapoorji Pallonji Group to renew push for Tata Sons listing]( [Companies]( [Shapoorji Pallonji Group to renew push for Tata Sons listing]( [IT sector records positive net hiring from top four firms for first time in two years]( [Info-tech]( [IT sector records positive net hiring from top four firms for first time in two years]( [PV inventory levels dip as sales pick up during festival season]( [Companies]( [PV inventory levels dip as sales pick up during festival season]( [Central Government faces staffing challenges: 24% of civilian posts vacant for third straight year]( [Economy]( [Central Government faces staffing challenges: 24% of civilian posts vacant for third straight year]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](