JSW Group Targets White Goods Sector with Potential Haier Joint Venture.

After entering the auto sector through a joint venture with MG Motors, Sajjan Jindal-led JSW Group is now in discussions with Chinese electronics giant Haier Group to make a strategic move into the white goods industry.

Based in Shandong, Haier Group has faced delays in realizing its expansion plans in India due to regulatory hurdles on foreign direct investment (FDI). Under Press Note 3 of 2020, FDI from countries sharing a land border with India, including China, requires prior government approval. Applications for such investments are reviewed by an inter-ministerial committee led by the Home Secretary. Sources indicate Haier has proposed an investment of ₹1,000 crore in a joint venture with JSW Group to establish manufacturing facilities in India, with Haier open to ceding a majority stake to JSW.

While both JSW and Haier have refrained from commenting, sources suggest this partnership could help Haier compete with local and global brands such as Voltas, Godrej, Samsung, and Panasonic, which are steadily expanding their presence in India’s fast-growing home appliance market. Haier, India’s third-largest appliance brand after LG and Samsung, already operates two manufacturing plants in Pune and Greater Noida. Despite its sizable market share, Haier has struggled to keep pace with rivals due to restrictions on fresh investment.

JSW Group’s growing involvement in sectors beyond its traditional steel business reflects a larger diversification strategy. Earlier this year, JSW acquired a 51% stake in MG Motor India for ₹5,000 crore, marking its first foray into the auto industry. Haier, on the other hand, is targeting the Indian market as its third-largest after China and the United States, with a consolidated manufacturing capacity of 9 million units per year.

Meanwhile, JSW’s significant role as a steel supplier to white goods manufacturers positions it well for a joint venture in this sector. With rising demand for white goods in India’s smaller cities, manufacturers have been expanding their operations in rural areas to boost production capacity and improve margins.

A recent Economic Survey further highlighted the potential benefits of opening up investment channels from China to help bridge India’s trade deficit. It noted that enhancing FDI from China, especially in sectors like manufacturing, could better integrate India into global supply chains and provide a more balanced approach to the "China Plus One" strategy.

HBL