Haier today announced mega investment plans for expansion of the company’s manufacturing facility in the country as part of the Indian government’s ‘Make In India’ agenda. The investment plans to expand Haier’s existing manufacturing facility at Ranjangaon, Pune has resulted after a Memorandum of Understanding was signed between the Govt. of Maharashtra and Haier Group in China.
The proposed investment of 370 crores will scale up manufacturing operations of the company in India by introducing production of new product lines like, washing machines, air conditioners, LED panels, water heaters and deep freezers, apart from refrigerators. By 2017, Haier plans to increase the manpower by 120% to 2600 employees, across the country. The expansion will also serve as an additional opportunity for the vendors & OEMs, resulting in an increased 50% vendor employment.
In line with Haier’s global localization policy, the investment will enable the company to strengthen local R & D, to fortify capabilities to manufacture customer inspired product innovations for the Indian consumers. This will eventually enable the company to decrease dependence on imports hence, increasing value for money for consumers while making the distribution network more robust. The existing facility is sprawled over 40 acres of land in Ranjangaon, Pune, out of which 1/3rd area is currently utilized for manufacturing refrigerators at the capacity of 1 million units per year. By 2017, the company aims to utilize the remaining area available and increase the production capacity across product categories.
Mr. Eric Braganza, President Haier India said, “The expansion of our current facility in India is a testimony of our commitment to contribute to Indian Government’s flagship agenda ‘Make in India’, through which we will continue to focus on innovating and developing customer inspired products.” He further added, “At Haier Group, localization has been at the core of the business since its inception, which has helped the company to gain market leadership in several countries. We are positive that this expansion opens multiple opportunity areas not just for Haier but also for our consumers, employees, dealers and other key stakeholders.”
The expansion and scaling up of Haier’s manufacturing facility in India will play a significant role in increasing demand, catering to the increasing demand in the local market, increasing export volumes and exploring opportunities to enter new markets as the company will continue to strengthen local manufacturing prowess.