IKEA to double sourcing of products from India by 2020

Tribune News Service

New Delhi, December 10

Taking forward its commitment to the Indian market, IKEA, the global home furnishings leader, announced a new initiative — ‘Make More in India’. The initiative is aimed at potential suppliers and to expand IKEA’s supplier base and the categories of home furnishing products sourced in India. At present, IKEA sources products worth Euro 315 million and plans to double the sourcing by 2020.

Speaking about the new initiative, Sandeep Sanan, head of sourcing, IKEA South Asia, said, “We believe there is a 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 many suppliers will come from other segments which are looking to diversify their business.”

IKEA today has 48 suppliers in India with 45,000 direct employees and about 400,000 people in its extended supply chain.

As part of the ‘Make More in India’ initiative, IKEA India will conduct two seminars in Mumbai in Bangalore 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 such as furniture, mattresses, and sustainable materials like bamboo and acacia, and also growing suppliers for categories like metal, plastics, and lighting.

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 Prime Minister Narendra Modi’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,” Sanan said.

To identify potential Indian industry groups who could be interested to join, IKEA is in contact with various government export associations and industry organisations.