Ikea set to double Indian sourcing, open furniture stores
11 Dec 2014
Ikea, the world's largest furniture retailer, plans to double sourcing of home furnishing products from India by 2020, the company said today, adding that it is preparing to open its first store in the country.
The furniture retailer said it plans to buy goods worth €630 million by 2020 in India, from €315 million currently. To rope in more suppliers, the Swedish furniture maker is rolling out its ''Make More in India'' initiative in line with Prime Minister Narendra Modi's ''Make in India'' campaign that was launched in September this year to spur indigenous manufacturing in the country, especially by large foreign companies.
''We are looking for new suppliers who share our vision and values, are willing to grow with us and become world class suppliers. We believe that many suppliers will come from other segments which are looking to diversify their business,'' said Sandeep Sanan, head of sourcing at Ikea South Asia, in a press statement released by the company.
Ikea has been sourcing products from India for the past 27 years, working with 48 suppliers. Ikea India Pvt. Ltd is seeking to expand its authorised capital to Rs875 crore from the current Rs70 crore to establish its retail operations in the country, according to documents filed with the Registrar of Companies (RoC) in November.
The Swedish company has been in talks with various state governments to acquire land both for its stores as well as warehouses. The company is looking for suitable locations in Delhi-NCR (National Capital Region), Mumbai, Bengaluru and Hyderabad.
As part of the 'Make More in India' initiative, Ikea India will conduct seminars in Mumbai and Bengaluru in January, seeking participation from 100 potential suppliers.
The seminars will focus on enrolling new suppliers in categories such as textiles and rugs as well as for new home furnishing categories such as furniture, mattresses and sustainable materials such as bamboo and acacia and also expand the number of suppliers for categories such as metal, plastics and lighting.
The company has promised to invest Rs10,500 crore to open large stores in India. ''The Ikea Group is positive to all government initiatives that simplify and make it easier to produce in and export products from India,'' Sanan said.
