Haier India Expands Noida AC Plant with Rs 1000 Crore Investment, Plans Exports by 2026

Haier India is investing Rs 1,000 crore to expand its Noida facility, aiming to boost AC production to over four million units annually by 2026 and enter international exports. The investment includes Rs 200 crore for injection molding, Rs 100 crore for PCB manufacturing (launching in October 2024), and Rs 700 crore for the AC plant. This expansion will create 3,500 new jobs, increasing the workforce to 7,000.

With India’s AC penetration at just 11%, Haier sees strong growth potential. The company, already India’s third-largest appliance brand, grew 27% annually over seven years and is targeting Rs 11,500 crore in 2025 revenue. It is also considering a South India manufacturing hub for premium kitchen appliances.

Haier’s marketing efforts, including cricket sponsorships, have enhanced brand visibility. Despite challenges in some segments, the company remains optimistic, aiming to surpass competitors and secure the second spot in India’s appliance sector.

Haier India Expands Noida AC Plant with Rs 1000 Crore Investment, Plans Exports by 2026

Haier India has announced a significant investment of Rs 1,000 crore to expand its Noida manufacturing facility, aiming to boost air conditioner production to over four million units per year. This strategic move includes the development of a new AC plant, slated for completion by 2026, along with plans to venture into international exports.

The investment is allocated across three key areas: Rs 200 crore for injection molding infrastructure, Rs 100 crore for a PCB (printed circuit board) manufacturing unit, and Rs 700 crore for the AC plant. According to N.S. Satish, President of Haier India, the PCB facility is set to launch in October 2024, while the expanded AC production line will become operational by 2026. This expansion is expected to create 3,500 new jobs, increasing the campus workforce to 7,000 employees.

Highlighting India’s low AC penetration rate of 11%, Satish emphasized the sector’s growth potential, driven by rising temperatures and environmental changes. Haier’s market share grew by 2% last year, and the company aims to sustain this momentum. The Noida facility, which currently produces 1.5 million AC units annually, will quadruple its output after the expansion.

Additionally, Haier is exploring the establishment of a third manufacturing hub in South India, focusing on premium kitchen appliances to leverage regional logistics advantages. Existing facilities in Noida and Pune produce a range of appliances, including refrigerators, washing machines, and LED TVs.

Over the past seven years, Haier has achieved a 27% compound annual growth rate, positioning itself as India’s third-largest appliance brand. With 2024 revenues exceeding $1 billion, the company is targeting Rs 11,500 crore for 2025, supported by a 36% growth surge in the first two months of the year.

Marketing initiatives, such as sponsorships of major cricket events like the ICC Champions Trophy and IPL campaigns, have bolstered brand visibility. Despite challenges in segments like LED TVs, Satish remains optimistic, citing economic factors such as GDP growth and tax reforms that could drive consumer upgrades.

Haier’s steady monthly market share gains demonstrate its resilience even in a subdued market, reinforcing its ambition to climb to the second spot in India’s appliance sector within the next few years. The company’s strategic investments in manufacturing expansion, technological advancements, and aggressive marketing campaigns have positioned it as a strong competitor against industry leaders like LG and Samsung.

With India’s air conditioner market still under-penetrated at just 11%, Haier sees immense growth potential, driven by rising temperatures and evolving consumer demand. The company’s focus on local manufacturing, including its new AC plant and PCB unit, not only enhances production capacity but also strengthens its supply chain, reducing reliance on imports.

Additionally, Haier’s involvement in high-visibility events like the ICC Champions Trophy and IPL has boosted brand recognition, further driving sales. With continuous innovation and market expansion, Haier is well on track to achieving its long-term goal of becoming India’s second-largest appliance brand.