July 7 (Reuters) - Sunil Mittal, founder of Bharti

Airtel, and private equity firm Warburg Pincus have

jointly bid $720 million for a 49% stake in the Indian arm of

Haier, the Business Standard reported on Monday,

citing sources.

Haier, a Chinese electronics maker, had initially sought a

$2 billion valuation for the stake but received lower bids, the

report said.

Warburg Pincus declined to comment. Haier and Sunil Mittal

did not immediately respond to Reuters emails seeking comment.

Bloomberg News had reported in May that the company was

exploring a potential $2 billion deal.

As part of the proposed deal, Haier India employees may be

granted a 2% stake, the report said, adding that a stock market

listing is being considered within two years to provide an exit

route for the Chinese parent.

Valuation expectations have been dampened by high brand

usage fees and royalty demands from Haier Group, the report

added.

Haier India operates three manufacturing facilities in the

country, producing air conditioners, refrigerators, washing

machines, and other appliances.

The group, which currently owns the entire Indian unit, has

been considering a partial exit and previously held early-stage

talks with Reliance Industries, according to the report.