Haier India will invest ₹7,000 crore in a manufacturing facility in Andhra Pradesh. This is going to be its biggest investment in India till date. It will allow Haier to develop a manufacturing presence in South India. Currently, it has manufacturing plants in Pune, Maharashtra, and Greater Noida, Uttar Pradesh.
The project will be completed in two phases, with the first phase expected to become operational in 2028.
Investment in two phases planned:
As per the report, Andhra Pradesh government has identified around 250 acres in Satyavedu mandal in Tirupati district to develop the proposed facility.
Haier will invest ₹4,500 crore in the first phase and then invest ₹2,500 crore in the second phase. This project will create 6,000 direct jobs at the facility and 15,000 indirect job opportunities by 2032.
The manufacturing facility will produce air conditioners, washing machines, and television sets. Besides, it will manufacture small appliances like air purifiers and kitchen appliances. This will help in meeting its manufacturing expansion plans in India.
Its revenue target is ₹22,000 crore by 2028. With the Andhra Pradesh project, it will have a Southern manufacturing base in addition to its existing manufacturing facility.
Electronics manufacturing corridor gets investments:
The new plant will be situated in the broader industrial zone including the cities of Tirupati, Chennai and Nellore, where electronics and consumer appliances producers are concentrated.
The area of industrial facilities and transportation networks is expected to provide some potential for procurement and distribution of products. There is road connection to the National Highway 16, and proximity to the ports of Chennai, Ennore and Kattupalli, as well as to Krishnapatnam port.
The broader industrial zone comprises companies such as Foxconn, Panasonic and Flex. LG Electronics is building up its manufacturing plant in Sri City, which will join the production of consumer electronics in this region.
The investment will help to diversify the geography of its operations in India and create business opportunities for component suppliers and industrial services providers.
It is another example of manufacturing investments in the electronics and consumer durables industries. The employment and output impact is estimated subject to successful realization of investment phases and ramp-up of the facility.
