HAIER SMART HOME(SH:600690) Jin Tou Wang·2025-12-25 06:24Core Viewpoint - Haier Smart Home's decision to sell 49% of its stake in its Indian subsidiary to Warburg Pincus and Bharti Group is a strategic move to mitigate risks and enhance operational efficiency in the current international environment [1][2]. Group 1: Investment and Financial Implications - The sale allows Haier to recover historical investments, as its Indian operations have seen a compound annual growth rate of 25% over the past seven years, indicating strong market performance [3]. - The transaction is expected to exceed historical investment amounts, although specific figures have not been disclosed [4]. Group 2: Market and Operational Strategy - The Indian home appliance market is projected to grow from $77.74 billion in 2024 to $135.33 billion by 2034, with a compound annual growth rate of 5.70%, making it one of the fastest-growing markets globally [4]. - Collaborating with local partners like Warburg Pincus and Bharti Group will enable Haier to leverage local networks and resources, enhancing product innovation and market penetration [4]. Group 3: Risk Management - By introducing local capital, Haier can better navigate geopolitical risks and regulatory challenges in India, effectively distributing risks related to policies, laws, and taxes [4]. - This strategic move is seen as a way to safeguard assets in a complex international landscape, particularly in a market where foreign investments face scrutiny [2][4].