Chinese appliances maker Haier is scouting for a strategic local partner in India. A similar strategy was employed by MG Motor, which has tied up with JSW Group.
The company is working with its global advisor, Citi, to reach out to Indian groups that do not have a competing business. While Haier is looking to dilute up to 25 percent, but this could go as high as 49 percent. A joint control mechanism, with the Indian partner as the single largest shareholder is also likely.
The development comes amidst the heightened scrutiny by Indian regulators and government agencies on Chinese companies under Press Note 3 norms. Haier Appliances India is the third-largest appliances company in the country after LG and Samsung.