- China's Haier to retain 49% stake in Indian unit, entity's employees own 2%
- Haier India valued at $1.67 billion per Economic Times
- Chinese investments in India face regulatory scrutiny
Dec 24 (Reuters) - U.S. private equity firm Warburg Pincus and India's Bharti Enterprises will together purchase a 49% stake in appliance maker Haier India, the companies said on Wednesday, giving them a foothold in the country's fast-growing electronic appliances market led by Samsung and LG.
The stake will be bought from China’s Haier Group, which currently owns the unit. Haier will retain a 49% holding after the deal, while employees will own the remaining 2%.
While relations between India and China have cautiously improved in recent months, Chinese investments in Indian firms remain subject to regulatory scrutiny and approval.
The companies did not disclose the deal value or valuation. However, Indian business daily Economic Times, citing industry executives, reported that Haier India was likely worth 150 billion rupees ($1.67 billion).
Bharti Enterprises and Warburg did not respond to Reuters' request for comment on the deal's valuation.
Haier India manufactures air conditioners, refrigerators, televisions, washing machines, and kitchen appliances across its two facilities in Pune and Greater Noida.
($1 = 89.8075 Indian rupees)
Reporting by Nandan Mandayam in Bengaluru; Editing by Harikrishnan Nair
Source: Reuters