Haier's 800 Crore Cooling Surge: India AC Expansion & PCB Push

Chinese home appliance giant Haier is set to invest Rs 800 crore in India to enhance its air-conditioner (AC) production capacity and establish a printed circuit board (PCB) manufacturing unit.

Of the total investment, Rs 700 crore will be allocated to a new AC plant at Haier’s Greater Noida facility, increasing its annual production capacity from 1.5 million to 2.5 million units. On March 9, 2025, Chief Secretary Manoj Kumar Singh laid the foundation for the plant and inaugurated an injection moulding unit. Haier has also completed a Rs 200 crore investment in injection moulding, enabling in-house production of plastic components for household appliances. This brings the company's cumulative investment in India to Rs 1,600 crore.

An additional Rs 100 crore will be invested in setting up a PCB manufacturing unit, which is expected to commence commercial production by October 2025. The plant will manufacture PCBs for ACs, washing machines, and refrigerators. Haier plans to finance the investment through internal accruals and external commercial borrowings.

Meanwhile, Haier is considering selling a stake in its Indian entity and has received multiple non-binding bids. The move aims to reduce dependency on government approvals under Press Note 3 and support funding for a potential third manufacturing plant. The company has identified possible locations in Tamil Nadu and Andhra Pradesh. Haier currently operates two manufacturing plants in Greater Noida and Pune.

News by Rahul Yelligetti.