IKEA holds meeting with potential suppliers

Hyderabad is one of our prioritised markets, both in terms of setting up retail stores and growing the sourcing base, says company's CEO

Swedish multinational furniture retailer IKEA today organised a seminar titled ‘Make More in India’ in Hyderabad, aimed at identifying potential suppliers in Telangana in categories such as sofas, book shelves and mattresses as well as products made in bamboo, jute and other nature fibres.

Last year, the company announced Hyderabad as one of the first few locations to set up its manufacturing-cum-retail operations as part of its India foray. It has recently acquired land from the state government at Raidurg, a location surrounded by IT offices and large residential projects, at Rs 19.21 crore per acre.

The seminar, organised in collaboration with the Telangana government, was attended by more than 80 local suppliers, according to a press release issued by the company. This was the third such seminar organised by IKEA in India, following similar events in Mumbai and Bengaluru in January 2015.

 

“Hyderabad is one of our prioritised markets, both in terms of setting up retail stores and growing the sourcing base. As IKEA is planning to open retail stores, we look at how we will holistically grow our business in India. This will include knowledge transfer and investment in skill development, as we increase employment in both supply chain and retail. We are very excited about the opportunity that Telangana offers and the strong commitment for growth in all dimensions,” said Juvencio Maeztu, chief executive of IKEA India.

IKEA currently sources material worth $ 370 million from India, and plans to double its sourcing by 2020. It works with around 50 suppliers in India engaging approximately 400,000 co-workers directly and indirectly, according to the company.