Haier India Invests ₹1,000 Crore to Expand Noida AC Plant, Plans Exports by 2026

Haier Appliances India has announced an additional investment of Rs 1,000 crore in its Noida campus to enhance air conditioner (AC) production capacity. The expansion will include the establishment of a new air conditioner manufacturing plant, which is expected to be completed by 2026.

This investment aligns with the company’s growth strategy, aiming to increase AC production to over four million units annually. As part of this expansion, Haier India is also planning to commence exports once the new facility is operational.

Breakdown of Investment and Operational Plans

Haier India has already invested Rs 1,400 crore in the first phase of its Noida plant expansion. The latest investment will be allocated as follows:

• Rs 200 crore for injection moulding

• Rs 100 crore for PCB (Printed Circuit Board) manufacturing

• Rs 700 crore for the AC manufacturing plant

According to N.S. Satish, President of Haier India, the PCB manufacturing unit will begin operations in October 2025, while the AC plant will be fully functional by 2026.

Job Creation and Workforce Expansion

The expansion is set to generate 3,500 additional jobs, increasing the total workforce at the Noida campus to approximately 7,000 employees. This move is expected to boost local employment opportunities and strengthen the company’s production capabilities.

Growth Prospects in the Indian AC Market

Satish highlighted the immense growth potential of the Indian air conditioning market. With an AC penetration rate of just 11%, rising temperatures and climate changes are expected to drive significant demand.

“Last year, we increased our market share by 2%, and we expect further growth this year. Our Noida plant currently has a production capacity of 1.5 million AC units, which will rise to 4 million units with the new factory,” he said.

Plans for a New Manufacturing Facility in South India

Haier is also exploring the possibility of setting up a third manufacturing facility in South India. If established, this plant will focus on producing kitchen appliances and premium products across various categories. The company aims to leverage logistical advantages to optimize distribution and market reach.

Currently, Haier’s Noida facility manufactures air conditioners, semi-automatic washing machines, and single-door refrigerators. Meanwhile, its Pune plant produces top-load washing machines, double-door refrigerators, and LED TVs.

Consistent Business Growth and Market Position

Haier India has experienced significant growth across product segments. According to Satish, the company has achieved a compound annual growth rate (CAGR) of 27% over the past seven years. This expansion investment reflects Haier’s long-term strategy to sustain and accelerate this growth.

Haier currently holds the third position in the Indian appliances market, following LG and Samsung. However, the company is ambitious about securing the second spot within the next two to three years.

“We closed at over $1 billion in revenue in the 2024 calendar year and are now targeting Rs 11,500 crore in revenue. The first two months of 2025 have been strong, with a 36% growth rate, keeping us on track to achieve our revenue goal,” Satish stated.

Marketing Strategy and Brand Promotion

Haier’s recent sponsorship of the ICC Cricket Champions Trophy has played a key role in its growth strategy.

“We invested heavily in marketing. Previously, we avoided campaigns before April, but this year, we started early and went aggressive to capture market share from rivals,” Satish explained. The company plans to maintain its marketing investments during the upcoming Indian Premier League (IPL) season.

Market Challenges and Economic Outlook

Despite its growth, Haier acknowledges that some product segments, including LED TVs, have faced challenges in 2025. However, the company remains optimistic about future demand recovery, particularly in response to GDP growth and recently announced income tax benefits.

“The overall market has not seen significant growth, but we continue to gain market share by consistently growing at 0.1-0.2% each month,” Satish noted.

Conclusion

Haier India’s Rs 1,000 crore investment in expanding its Noida facility signifies a major step toward strengthening its position in the Indian appliances market. With increased production capacity, job creation, and future export plans, Haier aims to solidify its growth trajectory. The company’s ongoing marketing efforts and expansion into new manufacturing regions further reinforce its commitment to long-term success in the competitive appliance industry.