The Hindu : Business : Haier chalks out expansion plans

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Wednesday, Jan 23, 2008
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Haier chalks out expansion plans

Sandeep Joshi

To launch hi-tech air-conditioners and refrigerators

Gearing up for more acquisitions
New strategy for Indian market

QINGDAO (CHINA): Aimed at consolidating its position in India, a leading whitegoods manufacturer, Haier of China is gearing up for more acquisitions in the country.

“For us, India is not only an important market but also an upcoming sourcing hub. We have been chalking out expansion plans and soon we may go on for some strategic acquisitions of production facilities to consolidate our position in India,” Haier’s Managing Director Diao Yunfeng told a group of visiting Indian journalists at the company’s headquarters in this coastal township lying across the Shandong Peninsula.

Mr. Yunfeng said they had received some offers which were in advanced stage of negotiations. “We prefer the acquisition route to expand our business in India. The next three years (till 2010) will be crucial for us where we will execute these plans,” he said.

It was in mid-2007 that Haier, which entered India about three years ago, acquired Anchor Daewoo’s manufacturing plant near Pune and subsequently launched its first manufacturing facility, expanding its business operations in the country. Haier has also been upgrading the new facility with state-of-the-art equipment to create a research and development facility for refrigerators for India and other markets.

Stating that India is also being readied as Haier’s major manufacturing hub, Mr. Yunfeng said: “Spread in 40 acres, our Pune facility has a manufacturing capacity of 3.3 lakh refrigerators. But we also have production lines for colour TVs and washing machines, which can be used to expand our production. This plant will not only cater to the Indian market but also to some overseas markets as well. Interestingly, we have already dispatched consignments of refrigerators to 13 nations in Africa, the Middle-East and Sri Lanka on a trail basis.” Disclosing the company’s strategy for the Indian market in 2008, Haier India’s whole time director and Chief Operating Officer Pranay Dhabhai said: “We aim to be among top five companies in whitegoods products in next two to three years in India and we are aggressively working towards it.” In 2008 the company would be launching new hi-tech range of air-conditioners and refrigerators.

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