Haier India Expands Noida AC Plant with ₹1,000 Crore Investment

Haier India has announced an additional investment of ₹1,000 crore in its Noida campus to expand air conditioner (AC) production capacity to over four million units. The expansion includes a new AC manufacturing plant, set to be operational by 2026, and marks a significant step towards strengthening Haier’s footprint in the Indian market. The company also plans to begin exports once the facility is completed.

Haier India’s Phase 1 investment in Noida stood at ₹1,400 crore, and the new funds will be allocated to injection molding (₹200 crore), PCB manufacturing (₹100 crore), and the AC plant (₹700 crore). The PCB manufacturing unit is set to commence operations in October 2025, while the AC plant will follow in 2026. The expansion is expected to generate 3,500 additional jobs, bringing the total workforce at the Noida campus to 7,000.

N.S. Satish, President of Haier India, highlighted the potential of the Indian AC market, citing low penetration of just 11%, rising temperatures, and increasing demand. Haier’s market share increased by 2% last year, and the company aims for further growth. The Noida plant, currently producing 1.5 million AC units annually, will ramp up to 4 million units post-expansion.

Haier is also exploring the possibility of a third manufacturing facility in South India, which would focus on kitchen appliances and premium product categories. Presently, Haier’s Noida plant manufactures ACs, semi-automatic washing machines, and single-door refrigerators, while its Pune facility produces top-load washing machines, double-door refrigerators, and LED TVs.

The expansion aligns with Haier’s robust growth, with a 27% CAGR over the last seven years. The company closed 2024 with over $1 billion in revenue and is targeting ₹11,500 crore in 2025, growing at 36% in the first two months of the year. Satish noted that despite a sluggish market, Haier continues to gain market share.

Haier’s sponsorship of the ICC Cricket Champions Trophy has bolstered brand visibility, and the company plans further marketing investments during the Indian Premier League (IPL) season. Satish remains optimistic about future growth, citing GDP expansion and recent income tax benefits as positive indicators for consumer demand recovery.

Source: Moneycontrol