Ikea announces 'Make More in India' initiative

11 Dec '14

3 min read

Home furnishings company Ikea, the first major single brand retailer to get FDI approval from the Indian Government, has announced a new ‘Make More in India’ initiative.

The new initiative is aimed at inviting potential partners and to expand Ikea’s supplier base in India. It also aims at increasing the categories of home furnishing products sourced in India.

The initiative also has an objective of doubling the goods Ikea sources from India by 2020. The company currently sources goods valued at around €315 million from India annually.

“We believe there is tremendous potential in India. 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 who are looking to diversify their business,” said Sandeep Sanan, head of sourcing, Ikea South Asia, said in a statement.

Today, Ikea has 48 suppliers in India with 45,000 direct employees and about 400,000 people in its extended supply chain. To widen its supplier base under the ‘Make More in India’ initiative, Ikea India will conduct two seminars—in Mumbai on January 16, 2015, and in Bangalore on January 23—where more than 100 new potential suppliers are likely to participate.

The seminars will focus on enrolling new suppliers in existing categories like textiles and rugs; as well as for new home furnishing categories like furniture, mattresses, and sustainable materials like bamboo and acacia, Ikea said.

Sandeep added, “Ikea is committed to responsible sourcing, and our history of developing successful supplier relationships in India means that Ikea is well positioned, not just to ‘Make in India’ for India, but to ‘Make More in India’ for Ikea worldwide. This gives the current and future new suppliers in India a much bigger market to aspire for. Our suppliers are our strategic long term partners, and we are happy to share knowledge and technologies as we want them to grow with us.”

Ikea’s ‘Make More in India’ is a major initiative to speed up the process of finding the right suppliers who will partner Ikea to grow business in India. Ikea sourcing plans resonate with the Indian Prime Minister’s Make in India agenda. “The Ikea Group is positive to all Government initiatives that simplify and make it easier to produce in and export products from India,” Sandeep said.

Founded in Sweden in 1943, Ikea today operates 361 stores in 45 countries. In FY13, the company registered sales turnover of €30.1 billion. The company has plans to open several stores across India, including in Delhi/NCR, Hyderabad, Karnataka and Maharashtra. (RKS)

Fibre2fashion News Desk - India

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